Gas Act 1986

1986 CHAPTER 44

An Act to provide for the appointment and functions of a Director General of Gas Supply and the establishment and functions of a Gas Consumers’ Council; to abolish the privilege conferred on the British Gas Corporation by section 29 of the Gas Act 1972; to make new provision with respect to the supply of gas through pipes and certain related matters; to provide for the vesting of the property, rights and liabilities of the British Gas Corporation in a company nominated by the Secretary of State and the subsequent dissolution of that Corporation; to make provision with respect to, and to information furnished in connection with, agreements relating to the initial supply of gas won under the authority of a petroleum production licence; and for connected purposes.

[25th July 1986]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Extent Information

E1 Act, except for specified provisions, does not extend to N.I., see s. 68(6)

Modifications etc. (not altering text)

C1 Act applied (8.11.1995) by 1995 c. 45, s. 17(2)

C2 Act: references to the Director General of Gas Supply ("the Director") shall be read as references to the Gas and Electricity Markets Authority ("the Authority") (20.12.2000) by virtue of Utilities Act 2000 (c. 27), s. 3(2); S.I. 2000/3343, art. 2, Sch.

C3 Act: references to a public gas transporter or to the holder of a licence under section 7 of the 1986 Act shall have effect as if they were references to a gas transporter (1.10.2001) by virtue of Utilities Act 2000 (c. 27), s. 76(7); S.I. 2001/3266, art. 2, Sch. (with arts. 3-20)

Part I U.K. Gas Supply

Modifications etc. (not altering text)

C4 Pt. I: definition of "public gas supplier" applied (E.W.) (1.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 208(3)(b), 225(2) (with ss. 16(6), 179, 222(3), Sch. 22 para. 1, Sch. 23 para. 6)

Pt. I: definition of "public gas supplier" applied (E.W.) (1.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 178, 225(2), Sch. 22 para. 1(4)(e) (with ss. 16(6), 179, 222(3), Sch. 22 para. 1, Sch. 23 para. 6)

Pt. I applied (1.3.1996) by 1995 c. 45, s. 6(7); S.I. 1996/218, art. 2

Pt. I applied (1.3.1996) by 1995 c. 45, s. 16(1), Sch. 4 para. 1; S.I. 1996/218, art. 2

Introductory U.K.

F1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F1 S. 1 repealed (7.11.2000) by 2000 c. 27, s. 108, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

F2 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F2 S. 2 repealed (7.11.2000) by 2000 c. 27, s. 108, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

3 Abolition of Corporation’s special privilege. E+W+S

As from such day as the Secretary of State may by order appoint for the purposes of this section and the following provisions of this Part (in this Act referred to as “the appointed day”), the privilege with respect to the supply of gas through pipes conferred on the British Gas Corporation (in this Act referred to as “the Corporation”) by section 29 of the 1972 Act shall cease to exist.

Modifications etc. (not altering text)

C5 23.8.1986 appointed for the purposes of section 3 and the following provisions of Part I (gas supply) by SI 1986/1316

[F3 4AA The principal objective and general duties of the Secretary of State and the Authority. E+W+S

(1) The principal objective of the Secretary of State and the Gas and Electricity Markets Authority (in this Act referred to as “the Authority”) in carrying out their respective functions under this Part is to protect the interests of consumers in relation to gas conveyed through pipes, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the shipping, transportation or supply of gas so conveyed.

(2) The Secretary of State and the Authority shall carry out those functions in the manner which he or it considers is best calculated to further the principal objective, having regard to—

(a) the need to secure that, so far as it is economical to meet them, all reasonable demands in Great Britain for gas conveyed through pipes are met; and

(b) the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under this Part or the Utilities Act 2000.

(3) In performing that duty, the Secretary of State or the Authority shall have regard to the interests of—

(a) individuals who are disabled or chronically sick;

(b) individuals of pensionable age;

(c) individuals with low incomes; and

(d) individuals residing in rural areas;

but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer.

(4) The Secretary of State and the Authority may, in carrying out any function under this Part, have regard to—

(a) the interests of consumers in relation to electricity conveyed by distribution systems (within the meaning of the M1 Electricity Act 1989); and

(b) any interests of consumers in relation to—

(i) telecommunication services and telecommunication apparatus (within the meaning of the M2 Telecommunications Act 1984); or

(ii) water services or sewerage services (within the meaning of the M3 Water Industry Act 1991),

which are affected by the carrying out of that function.

(5) Subject to subsection (2), the Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which he or it considers is best calculated—

(a) to promote efficiency and economy on the part of persons authorised by licences or exemptions to carry on any activity, and the efficient use of gas conveyed through pipes;

(b) to protect the public from dangers arising from the conveyance of gas through pipes or from the use of gas conveyed through pipes; and

(c) to secure a diverse and viable long-term energy supply,

and shall have regard, in carrying out those functions, to the effect on the environment of activities connected with the conveyance of gas through pipes.

(6) In this section “consumers” includes both existing and future consumers.

(7) In this section and sections 4AB and 4A, references to functions of the Secretary of State or the Authority under this Part include a reference to functions under the Utilities Act 2000 which relate to gas conveyed through pipes.

(8) In this Part, unless the context otherwise requires,—

• “exemption” means an exemption granted under section 6A;

• “licence” means a licence under section 7 or 7A and “licence holder” shall be construed accordingly.]

Textual Amendments

F3 S. 4AA substituted (20.12.2000) for s. 4 by 2000 c. 27, s. 9; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

Modifications etc. (not altering text)

C6 S. 4AA(2)(b) amended (temp. from 19.12.2000) by S.I. 2000/3343, art. 5 (subject to transitional provisions in arts. 3-15)

Marginal Citations

M1 1989 c. 29.

M2 1984 c. 12.

M3 1991 c. 56.

[F4 4AB Guidance on social and environmental matters. E+W+S

(1) The Secretary of State shall from time to time issue guidance about the making by the Authority of a contribution towards the attainment of any social or environmental policies set out or referred to in the guidance.

(2) The Authority shall, in carrying out its functions under this Part, have regard to any guidance issued under this section.

(3) Before issuing guidance under this section the Secretary of State shall consult—

(a) the Authority;

(b) the Gas and Electricity Consumer Council (in this Act referred to as “the Council”);

(c) licence holders; and

(d) such other persons as the Secretary of State considers it appropriate to consult in relation to the guidance.

(4) A draft of any guidance proposed to be issued under this section shall be laid before each House of Parliament.

(5) Guidance shall not be issued under this section until after the period of forty days beginning with—

(a) the day on which the draft is laid before each House of Parliament; or

(b) if the draft is laid before the House of Lords on one day and the House of Commons on another, the later of those two days.

(6) If, before the end of that period, either House resolves that the guidance should not be issued, the Secretary of State must not issue it.

(7) In reckoning any period of forty days for the purposes of subsection (5) or (6), no account shall be taken of any time during which—

(a) Parliament is dissolved or prorogued; or

(b) both Houses are adjourned for more than four days.

(8) The Secretary of State shall arrange for any guidance issued under this section to be published in such manner as he considers appropriate.]

Textual Amendments

F4 S. 4AB inserted (20.12.2000) by 2000 c. 27, s. 10; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

[F5 4A Health and safety. E+W+S

(1) The Secretary of State and the Authority shall consult the Health and Safety Commission about all gas safety issues which may be relevant to the carrying out of any of their respective functions under this Part.

(2) The Secretary of State and the Authority shall, in carrying out their respective functions under this Part, take into account any advice given by the Health and Safety Commission about any gas safety issue (whether or not in response to consultation under subsection (1)).

(3) For the purposes of this section a gas safety issue is anything concerning the conveyance of gas through pipes, or the use of gas conveyed through pipes, which may affect the health and safety of—

(a) members of the public; or

(b) persons employed in connection with the conveyance of gas through pipes or the supply of gas conveyed through pipes.]

Textual Amendments

F5 S. 4A substituted (20.12.2000) by 2000 c. 27, s. 11; S.I. 2000/3343, art. 2, Sch.(subject to transitional provisions in arts. 3-15)

[F6 4B Exceptions from sections 4AA to 4A. E+W+S

(1) Section 4AA does not apply in relation to the issuing by the Secretary of State of guidance under section 4AB.

(2) Sections 4AA to 4A do not apply in relation to anything done by the Authority—

(a) in the exercise of functions relating to the determination of disputes; or

(b) in the exercise of functions under section 36A(3).

(3) The Authority may nevertheless, when exercising any function under section 36A(3), have regard to any matter in respect of which a duty is imposed by sections 4AA to 4A if it is a matter to which the Director General of Fair Trading could have regard when exercising that function.

(4) The duties imposed by sections 4AA to 4A do not affect the obligation of the Authority or the Secretary of State to perform or comply with any other duty or requirement (whether arising under this Act or another enactment, by virtue of any Community obligation or otherwise).]

Textual Amendments

F6 S. 4B inserted (20.12.2000) by 2000 c. 27, s. 12; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

Modifications etc. (not altering text)

C7 S. 4B(3) excluded (20.12.2000) by S.I. 2000/3343, art. 10(1)(b) (subject to transitional provisions in arts. 3-15)

[F7 Licensing of activities relating to gas] E+W+S

Textual Amendments

F7 S. 5 and cross-heading preceding it substituted (1.3.1996) by 1995 c. 45, s. 3; S.I. 1996/218, art. 2

[5 F8 Prohibition on unlicensed activities E+W+S

(1) Subject to section 6A below and Schedule 2A to this Act, a person who—

(a) conveys gas through pipes to any premises, or to a pipe-line system operated by a public gas transporter;

(b) supplies to any premises gas which has been conveyed to those premises through pipes; or

(c) arranges with a public gas transporter for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter,

shall be guilty of an offence unless he is authorised to do so by a licence.

(2) The exceptions to subsection (1) above which are contained in Schedule 2A to this Act shall have effect.

(3) A person guilty of an offence under this section shall be liable—

(a) on summary conviction to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

(4) No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State or the Director.

(5) Any reference in this Part to the conveyance by any person of gas through pipes to any premises is a reference to the conveyance by him of gas through pipes to those premises with a view to the gas being supplied to those premises by any person, or being used in those premises by the holder of a licence under section 7A(2) below.]

Textual Amendments

F8 S. 5 and cross-heading substituted (1.3.1996) by 1995 c. 45, s. 3; S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C8 S. 5(1)(a) excluded (8.11.1995 with effect as mentioned in Sch. 5 Pt. II para. 16(1) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 16(1)(a); S.I. 1996/218, art. 2

S. 5(1)(a) excluded (14.10.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/2639, arts. 1(2)(3), 3, 4-6, 7(1)

S. 5(1)(a) restricted (9.12.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/3089, arts. 1(2)(3), 3, 5(1)

C9 S. 5(1)(a)-(c) excluded (8.11.1995 for specified purposes) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 17(1)(a)

C10 S. 5(1)(a) excluded (1.12.1996) by S.I. 1996/2795, arts. 3, 4

C11 S. 5(1)(b) excluded (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 16(1)(b); S.I. 1996/218, art. 2

S. 5(1)(b) excluded (14.10.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/2639, arts. 1(2)(3), 3, 4-6, 7(2)

S. 5(1)(b) restricted (9.12.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/3089, arts. 1(2)(3), 5(2)

C12 S. 5(1)(c) modified (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II paras. 18(1)

F9 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F9 S. 6 repealed (1.3.1996) by 1995 c. 45, ss. 3(3), 17(5), Sch. 6; S.I. 1996/218, art. 2

[F10 6A Exemptions from prohibition. E+W+S

(1) The Secretary of State may, after consultation with the Director, by order grant exemption from paragraph (a), (b) or (c) of section 5(1) above—

(a) either to a person or to persons of a class;

(b) either generally or to such extent as may be specified in the order; and

(c) either unconditionally or subject to such conditions as may be so specified.

(2) An exemption granted to persons of a class, and the revocation of such an exemption, shall be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of that class.

(3) An exemption, unless previously revoked in accordance with any term contained in the exemption, shall continue in force for such period as may be specified in or determined by or under the exemption.

(4) Without prejudice to the generality of paragraph (c) of subsection (1) above, conditions included by virtue of that paragraph in an exemption may require any person carrying on any activity in pursuance of the exemption—

(a) to comply with any direction given by the Secretary of State or the Director as to such matters as are specified in the exemption or are of a description so specified;

(b) except in so far as the Secretary of State or the Director consents to his doing or not doing them, not to do or to do such things as are specified in the exemption or are of a description so specified; and

(c) to refer for determination by the Secretary of State or the Director such questions arising under the exemption as are specified in the exemption or are of a description so specified.

(5) If any condition of an exemption granted to persons of a class is not complied with by any person of that class, the Secretary of State may give to that person a direction declaring that the exemption is revoked, so far as relating to that person, to such extent and as from such date as may be specified in the direction.]

Textual Amendments

F10 S. 6A substituted (1.3.1996) by 1995 c. 45, s. 4; S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C13 S. 6A extended (8.11.1995 with effect as mentioned in Sch. 5 Pt. II paras. 16(1), 17(1) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II paras. 16(1)(b), 17(1)(b); S.I. 1996/218, art. 2

[F11 7 Licensing of public gas transporters. E+W+S

(1) In this Part “public gas transporter” means the holder of a licence under this section except where the holder is acting otherwise than for purposes connected with—

(a) the carrying on of activities authorised by the licence;

(b) the conveyance of gas through pipes which—

(i) are situated in an authorised area of his; or

(ii) are situated in an area which was an authorised area of his, or an authorised area of a previous holder of the licence, and were so situated at a time when it was such an area; or

(c) the conveyance through pipes of gas which is in the course of being conveyed to or from a country or territory outside Great Britain.

(2) Subject to subsection (3) below, the Director may grant a licence authorising any person to do either or both of the following, namely—

(a) to convey gas through pipes to any premises in an authorised area of his, that is to say, so much of any area specified in the licence or an extension of the licence as is not specified in a subsequent licence or extension granted under this section to another person; and

(b) to convey gas through pipes either to any pipe-line system operated by another public gas transporter, or to any pipe-line system so operated which is specified in the licence or an extension of the licence.

(3) A licence shall not be granted under this section to a person who is the holder of a licence under section 7A below.

(4) The Director may, with the consent of the licence holder, direct that any licence under this section shall have effect—

(a) as if any area or pipe-line system specified in the direction were specified in the licence;

(b) in the case of a licence under subsection (2)(a) above, as if it were also a licence under subsection (2)(b) above and any pipe-line system specified in the direction were specified in the licence; or

(c) in the case of a licence under subsection (2)(b) above, as if it were also a licence under subsection (2)(a) above and any area specified in the direction were specified in the licence;

and references in this Part to, or to the grant of, an extension under this section, or an extension of such a licence, shall be construed as references to, or to the giving of, such a direction.

(5) Before granting a licence or extension under this section, the Director shall give notice—

(a) stating that he proposes to grant the licence or extension;

(b) stating the reasons why he proposes to grant the licence or extension; and

(c) specifying the time from the date of publication of the notice (not being less than two months or, in the case of an extension, such shorter time as may be prescribed) within which represent- ations or objections with respect to the proposed licence or extension may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(6) A notice under subsection (5) above shall be given—

(a) by publishing the notice in such manner as the Director considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the licence or extension; and

(b) by sending a copy of the notice to the Secretary of State, to the Health and Safety Executive and to any public gas transporter whose area includes the whole or any part of the area proposed to be specified in the licence or extension.

(7) A licence or extension under this section shall not specify any area which is specified in an earlier licence or extension granted under this section to another public gas transporter unless the Director considers that the applicant intends to carry on the activities authorised by the licence in a substantial part of that area.

(8) A licence or extension under this section shall not specify any area which is situated within 23 metres from a main of another public gas transporter unless—

(a) the other public gas transporter has consented in writing to the area being so specified; or

(b) no premises connected to the main are situated in the area and the Director considers—

(i) that the main is not, and is not intended to be, a relevant main;

(ii) that the other public gas transporter is not performing his duty under section 9(1) or 10(2) or (3) below in relation to any premises situated in the area; or

(iii) that the configuration of the main and of the surrounding area is such that it would be appropriate to specify the area in the licence or extension.

(9) As soon as practicable after the granting of a licence under this section, the public gas transporter shall publish, in such manner as the Director considers appropriate for bringing it to the attention of persons who are likely to do business with the transporter, a notice—

(a) stating that the licence has been granted; and

(b) explaining that, as a result, it might be necessary for those persons to be licensed under section 7A below.

(10) In this section—

(a) “relevant main” has the same meaning as in section 10 below;

(b) references to an area specified in a licence or direction include references to an area included in an area so specified; and

(c) references to a pipe-line system specified in a licence or direction include references to a pipe-line system of a description, or situated in an area, so specified.

(11) Any reference in this Part (however expressed) to activities authorised by a licence under this section shall be construed without regard to any exception contained in Schedule 2A to this Act.]

Textual Amendments

F11 S. 7 substituted (1.3.1996) by 1995 c. 45, s. 5; S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C14 S. 7 amended (16.5.2001) by 2000 c. 27, s. 81(1); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10)

C15 S. 7 applied (with modifications) (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 15(1)(4); S.I. 1996/218, art. 2

C16 S. 7 extended (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. I para. 1(1)(a); S,I. 1996/218, art. 2

[F12 7A Licensing of gas suppliers and gas shippers. E+W+S

(1) Subject to subsection (3) below, the Director may grant a licence authorising any person to do either or both of the following, namely—

(a) to supply, to any premises specified in the licence, gas which has been conveyed through pipes to those premises; and

(b) to supply, to any premises at a rate which, at the time when he undertakes to give the supply, he reasonably expects to exceed 2,500 therms a year, gas which has been conveyed through pipes to those premises.

(2) Subject to subsection (3) below, the Director may grant a licence authorising any person to arrange with any public gas transporter for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter, either generally or for purposes connected with the supply of gas to any premises specified in the licence.

(3) A licence shall not be granted under this section to a person who is the holder of a licence under section 7 above.

(4) The Director may, with the consent of the licence holder, direct that any licence under this section shall have effect—

(a) as if any premises specified in the direction were specified in the licence; or

(b) in the case of a licence under subsection (1)(b) above, as if it were also a licence under subsection (1)(a) above and any premises specified in the direction were specified in the licence,

and references in this Part to, or to the grant of, an extension under this section, or an extension of such a licence, shall be construed as references to, or to the giving of, such a direction.

(5) Subsection (4) above shall not apply in relation to a licence under subsection (1) above which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a public gas transporter.

(6) The Director may, with the consent of the licence holder, direct that any licence under this section shall have effect as if any premises specified in the direction were not specified in the licence; and references in this Part to, or to the grant of, a restriction under this section, or a restriction of such a licence, shall be construed as references to, or to the giving of, such a direction.

(7) In this section references to premises specified in a licence or direction include references to premises of a description, or situated in an area, so specified.

(8) The Director shall not, in any licence under subsection (1) above, or in any extension or restriction of such a licence, specify any premises by description or area if he is of the opinion that the description or area has been so framed as—

(a) in the case of a licence or extension, artificially to exclude from the licence or extension; or

(b) in the case of a restriction, artificially to include in the restriction,

premises likely to be owned or occupied by persons who are chronically sick, disabled or of pensionable age, or who are likely to default in the payment of charges.

(9) If the holder of a licence under subsection (1) above applies to the Director for a restriction of the licence, or for the revocation of the licence in accordance with any term contained in it, the Director shall, subject to subsection (8) above, accede to the application if he is satisfied that such arrangements have been made as—

(a) will secure continuity of supply for all relevant consumers; and

(b) in the case of each such consumer who is supplied with gas in pursuance of a contract, will secure such continuity on the same terms as nearly as may be as the terms of the contract.

(10) A person is a relevant consumer for the purposes of subsection (9) above if—

(a) immediately before the restriction or revocation takes effect, he is being supplied with gas by the holder of the licence; and

(b) in the case of a restriction, his premises are excluded from the licence by the restriction;

and in that subsection “contract” does not include any contract which, by virtue of paragraph 8 of Schedule 2B to this Act, is deemed to have been made.

(11) In this Part “gas supplier” and “gas shipper” mean respectively the holder of a licence under subsection (1) above, and the holder of a licence under subsection (2) above, except (in either case) where the holder is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence.

(12) Any reference in this Part (however expressed) to activities authorised by a licence under subsection (1) above shall be construed without regard to any exception contained in Schedule 2A to this Act.]

Textual Amendments

F12 S. 7A inserted (1.3.1996) by 1995 c. 45, s. 6; S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C17 S. 7A applied (with modifications) (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 15(1)(4); S.I. 1996.218, art. 2

S. 7A applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 2(2)

C18 S. 7A(1) extended (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. I para. 1(1)(b), Pt. II para. 16(1)(b); S.I. 1996/218, art. 2

C19 S. 7A(2) extended (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. I para. 1(1)(c), Pt. II para. 16(1)(c); S.I. 1996/218, art. 2

[F13 7B Licences: general. E+W+S

(1) An application for a licence or an extension or restriction of a licence shall be made in such form and manner, and shall contain, or be accompanied by, such information and documents and such fee (if any), as may be prescribed.

(2) Within the prescribed period after the making of an application for a licence or an extension or restriction of a licence, the applicant shall—

(a) publish a notice of the application in the prescribed manner; and

(b) in the case of an application for a licence or extension under section 7 above, give notice of the application to any public gas transporter whose authorised area includes the whole or any part of the area to which the application relates.

(3) A licence or an extension or restriction of a licence shall be in writing and, unless revoked or suspended in accordance with any term contained in it, a licence shall continue in force for such period as may be specified in or determined by or under the licence.

(4) A licence may include—

(a) such conditions (whether or not relating to the activities authorised by the licence) as appear to the Director to be requisite or expedient having regard to the duties imposed by [F14 sections 4AA, 4AB and 4A];

F15 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) conditions requiring the rendering to the Director of a payment on the grant of the licence or payments during the currency of the licence or both of such amount or amounts as may be determined by or under the licence; F16 . . .

F16 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Without prejudice to the generality of paragraph (a) of subsection (4) above—

(a) conditions included by virtue of that paragraph in a licence may—

(i) require the holder to comply with any direction given by the Director or the Secretary of State as to such matters as are specified in the licence or are of a description so specified;

(ii) require the holder, except in so far as the Director or the Secretary of State consents to his doing or not doing them, not to do or to do such things as are specified in the licence or are of a description so specified; and

(iii) provide for the determination by the Director, the Secretary of State or the Health and Safety Executive of such questions arising under the licence, or under any document specified or described in the licence, as are specified in the licence or are of a description so specified; and

(b) conditions included by virtue of that paragraph in a licence under section 7 above may require the holder, in such circumstances as are specified in the licence—

(i) so to increase his charges for the conveyance of gas as to raise such amounts as may be determined by or under the conditions; and

(ii) to pay the amounts so raised to such holders of licences under section 7A above as may be so determined.

(6) Conditions included in a licence may—

(a) impose requirements by reference to designation, acceptance or approval by the Director, the Secretary of State or the Health and Safety Executive; and

(b) provide for references in the conditions to any document specified or described in the licence to operate as references to that document as revised or re-issued from time to time.

(7) Conditions included in a licence may contain provision for the conditions to—

(a) have effect or cease to have effect at such times and in such circumstances as may be determined by or under the conditions; or

(b) be modified in such manner as may be specified in the conditions at such times and in such circumstances as may be so determined.

(8) Any provision included in a licence by virtue of subsection (7) above shall have effect in addition to the provision made by this Part with respect to the modification of the conditions of a licence.

(9) As soon as practicable after granting a licence or an extension or restriction of a licence, the Director shall send a copy of the licence or extension or restriction—

(a) to the Health and Safety Executive; and

(b) in the case of a licence or extension under section 7 above, to any public gas transporter whose authorised area previously included the whole or any part of the area specified in the licence or extension.

(10) Any sums received by the Director under or by virtue of this section shall be paid into the Consolidated Fund.]

Textual Amendments

F13 S. 7B inserted (1.3.1996) by 1995 c. 45, s. 7; S.I. 1996/218, art. 2

F14 Words in s. 7B(4)(a) substituted (20.12.2000) by 2000 c. 27, s. 74(3)(a); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F15 S. 7B(4)(b) omitted (20.12.2000) by 2000 c. 27, s. 74(3)(b); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15) and repealed (prosp.) by 2000 c. 27, ss. 108, 110(2), Sch. 8

F16 S. 7B(4)(d) and word “and” preceding it repealed (7.11.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 5, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

Modifications etc. (not altering text)

C20 S. 7B applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 2(2)

C21 S. 7B applied (with modifications) (8.11.1995 ) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 15(1)(4); S.I. 1996/218, art. 2

[F17 8 Standard conditions of licences. E+W+S

(1) Subject to subsections (2) and (3) and sections 23(2), 26(1A) and 27(2) below, each condition which by virtue of section 8(2) of the Gas Act 1995 is a standard condition for the purposes of—

(a) licences under section 7 above;

(b) licences under subsection (1) of section 7A above; or

(c) licences under subsection (2) of that section,

shall be incorporated (that is to say, incorporated by reference) in each licence under that section or, as the case may be, that subsection.

(2) Subsection (1) above shall not apply in relation to a licence under section 7A(1) above which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a public gas transporter.

(3) Subject to the following provisions of this section, the Director may, in granting a licence, modify any of the standard conditions to such extent as he considers requisite to meet the circumstances of the particular case.

(4) Before making any modifications under subsection (3) above, the Director shall give notice—

(a) stating that he proposes to make the modifications and setting out their effect;

(b) stating the reasons why he proposes to make the modifications; and

(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(5) A notice under subsection (4) above shall be given—

(a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and

(b) by sending a copy of the notice to the Secretary of State, to the Health and Safety Executive and to the Council.

(6) If, within the time specified in the notice under subsection (4) above, the Secretary of State directs the Director not to make any modification, the Director shall comply with the direction.

(7) The Director shall not make any modifications under subsection (3) above of a condition of a licence under subsection (1) or (2) of section 7A above unless he is of the opinion that the modifications are such that no other holder of such a licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence).

(8) The modification under subsection (3) above of a condition of a licence shall not prevent so much of the condition as is not so modified being regarded as a standard condition for the purposes of this Part.

(9) In this section “modify” includes fail to incorporate and “modification” shall be construed accordingly.]

Textual Amendments

F17 S. 8 substituted (1.3.1996) by 1995 c. 45, s. 8(1); S.I. 1996/218, art. 2

[F18 8AA Assignment of licences. E+W+S

(1) A licence shall be capable of being assigned either generally or—

(a) in the case of a licence under section 7 above, so far as relating to the whole or any part of an authorised area or any specified pipe-line system;

(b) in the case of a licence under section 7A above, so far as relating to any specified premises,

but only if it includes a condition authorising such assignment.

In this subsection “specified” means specified in the licence, or of a description, or situated in an area, so specified.

(2) A licence shall not be capable of being assigned except with the consent of the Director.

(3) In deciding whether to give his consent under subsection (2) above, the Director shall apply the same criteria as he would apply if—

(a) in the case of a general assignment, he were deciding whether to grant a corresponding licence to the assignee;

(b) in the case of any other assignment, he were deciding whether—

(i) to grant to the assignee a licence corresponding to so much of the licence as is proposed to be assigned; and

(ii) to grant to the assignor a licence corresponding to so much of the licence as is proposed to be retained.

(4) Subject to subsection (5) below, a consent under subsection (2) above may be given subject to compliance with—

(a) such modification or other conditions as the Director considers necessary or expedient for the purpose of protecting the interests of consumers; and

(b) such incidental or consequential modification conditions as he considers necessary or expedient,

and in the case of an assignment other than a general assignment, modification conditions may make as respects so much of the licence as is proposed to be retained by the assignor provision different from that made as respects so much of the licence as is proposed to be assigned.

(5) The Director shall—

(a) give the Health and Safety Executive not less than 28 days’ notice of any proposal of his to give a consent under subsection (2) above; and

(b) give that Executive and the Secretary of State not less than 28 days’ notice of any proposal of his to impose a modification condition;

and if, before the expiry of the time specified in a notice given to the Secretary of State under paragraph (b) above, the Secretary of State directs the Director not to impose the condition, the Director shall comply with the direction.

(6) A licence may include conditions which must be complied with before the licence can be assigned.

(7) An assignment, or purported assignment, of a licence shall be void—

(a) if the licence is not capable of assignment;

(b) if the assignment, or purported assignment, is in breach of a condition of the licence; or

(c) if there has, before the assignment or purported assignment, been a contravention of a condition subject to compliance with which the consent required by subsection (2) above is given.

(8) A licence shall not be capable of being assigned under or by virtue of any other provision of this Act.

(9) In this section—

• “assignment” includes any form of transfer and cognate expressions shall be construed accordingly;

• “modification condition” means a condition requiring or otherwise providing for the making of modifications to the conditions of a licence.

(10) Any reference in this section to “assignment” shall be construed in Scotland as a reference to assignation.]

Textual Amendments

F18 S. 8AA inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 1; S.I. 1996/218, art. 2

[8A F19 Modification or removal of the 25,000 therm limits. E+W+S

(1) The Secretary of State may by order amend [F20 section 10(8) or (12) below, paragraph 4 of Schedule 2A to this Act or paragraph 4, 8 or 16 of Schedule 2B to this Act]] by substituting—

(a) where the limit is for the time being expressed by reference to a number of therms—

(i) such lower number of therms as he considers appropriate; or

(ii) such lower limit, expressed by reference to a number of kilowatt hours, as he considers appropriate; or

(b) where the limit is for the time being expressed by reference to a number of kilowatt hours, such lower number of kilowatt hours as he considers appropriate.

(2) An order under subsection (1) above may be made so as to provide for the number specified in one provision to differ from that for the time being specified in any of the other provisions.

F21 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F19 S. 8A inserted (30.5.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 37; Commencement Order No. 1 made on 29.5.1992, art. 2.

F20 Words in s. 8A(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 2(1); S.I. 1996/218, art. 2

F21 S. 8A(3)(4) repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 2(2), Sch. 6; S.I. 1996/218, art. 2

[F22 The gas code] E+W+S

Textual Amendments

F22 S. 8B and cross-heading inserted (1.3.1996) by 1995 c. 45, s. 9; S.I. 1996/218, art. 2

8B [F23 The gas code.] E+W+S

The provisions of Schedule 2B to this Act (which relate to rights and obligations of licence holders and consumers and related matters) shall have effect.

Textual Amendments

F23 S. 8B and cross-heading inserted (1.3.1996) by 1995 c. 45, s. 9(1); S.I. 1996/218, art. 2

[F24 Powers and duties of public gas transporters] E+W+S

Textual Amendments

F24 Cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 3; S.I. 1996/218, art. 2

[F25 9 General powers and duties. E+W+S

(1) It shall be the duty of a public gas transporter as respects each authorised area of his—

(a) to develop and maintain an efficient and economical pipe-line system for the conveyance of gas; and

(b) subject to paragraph (a) above, to comply, so far as it is economical to do so, with any reasonable request for him to connect to that system, and convey gas by means of that system to, any premises.

(2) It shall also be the duty of a public gas transporter to avoid any undue preference or undue discrimination—

(a) in the connection of premises to any pipe-line system operated by him; or

(b) in the terms on which he undertakes the conveyance of gas by means of such a system.

(3) The following provisions shall have effect, namely—

(a) Schedule 3 to this Act (which provides for the acquisition of land by public gas transporters); and

(b) Schedule 4 to this Act (which relates to the breaking up of streets and bridges by such transporters).]

Textual Amendments

F25 S. 9 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 3; S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C22 S. 9(1)(b) applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 3(1)

C23 S. 9(3)(a) functions exercisable in or as regards Scotland (14.12.2000) by S.I. 2000/3253, art. 2, Sch. 1 para. 6 (with transitional provisions in art. 6)

S. 9(3)(a) functions transferred to Scottish Ministers (15.12.2000) by S.I. 2000/3253, art. 3, Sch. 2 (with transitional provisions in art. 6)

[F26 10 Duty to connect certain premises. E+W+S

(1) Subsection (2) below applies to any premises in an authorised area of a public gas transporter which—

(a) are situated within 23 metres from a relevant main of the transporter; or

(b) could be connected to any such main by a pipe supplied and laid, or proposed to be supplied and laid, by the owner or occupier of the premises.

(2) Subject to the provisions of this Part and any regulations made under those provisions, a public gas transporter shall, on being required to do so by the owner or occupier of any premises to which this subsection applies—

(a) in the case of premises falling within paragraph (a) of subsection (1) above, connect the premises to the relevant main, and supply and lay any pipe that may be necessary for that purpose; and

(b) in the case of premises falling within paragraph (b) of that subsection, connect the premises to the relevant main by the pipe there mentioned;

and in the following provisions of this section “connect”, in relation to any premises, means connect to a relevant main of a public gas transporter and “connection” shall be construed accordingly.

(3) Subject to the provisions of this Part and any regulations made under those provisions, where any premises are connected (whether by virtue of subsection (2) above or otherwise), the public gas transporter shall maintain the connection until such time as it is no longer required by the owner or occupier of the premises.

(4) Where any person requires a connection in pursuance of subsection (2) above, he shall serve on the public gas transporter a notice specifying—

(a) the premises in respect of which the connection is required; and

(b) the day (not being earlier than a reasonable time after the service of the notice) upon which the connection is required to be made.

(5) Where any pipe is supplied and laid by a public gas transporter in pursuance of subsection (2)(a) above, the cost of supplying and laying the pipe shall, if and to the extent that the transporter so requires and the conditions of his licence so allow, be defrayed by the person requiring the connection.

(6) Where at any time a public gas transporter connects any premises under subsection (2)(b) above—

(a) the pipe supplied and laid by the owner or occupier of the premises; and

(b) any rights of the owner or occupier which relate to the laying, maintenance, repair, alteration or removal of the pipe,

shall at that time vest in and become property or rights of the transporter.

(7) The Director may, with the consent of the Secretary of State, make provision by regulations for entitling a public gas transporter to require a person requiring a connection in pursuance of subsection (2) above to pay to the transporter an amount in respect of the expenses of the laying of the main used for the purpose of making that connection if—

(a) the connection is required within the prescribed period after the laying of the main;

(b) a person for the purpose of connecting whose premises the main was laid has made a payment to the transporter in respect of those expenses;

(c) the amount required does not exceed any amount paid in respect of those expenses by such a person or by any person previously required to make a payment under the regulations; and

(d) the transporter has not recovered those expenses in full.

(8) Nothing in subsection (2) or (3) above shall be taken as requiring a public gas transporter to connect, or maintain the connection of, any premises if the supply of gas to those premises is likely to exceed 75,000 therms in any period of twelve months.

(9) Nothing in subsection (2) or (3) above shall be taken as requiring a public gas transporter to connect, or to maintain the connection of, any premises if—

(a) he is prevented from doing so by circumstances not within his control;

(b) circumstances exist by reason of which his doing so would or might involve danger to the public, and he has taken all such steps as it was reasonable to take both to prevent the circumstances from occurring and to prevent them from having that effect; or

(c) in the case of premises falling within paragraph (b) of subsection (1) above, the pipe supplied and laid by the owner or occupier of the premises is not fit for the purpose.

(10) Where—

(a) any person requires a connection to be made or maintained in pursuance of subsection (2) or (3) above;

(b) the making or maintenance of the connection would involve a new or increased supply of gas to the premises in question;

(c) the public gas transporter reasonably expects that, if the connection were made or maintained, gas would be supplied to the premises in question at a rate exceeding 2,500 therms a year; and

(d) the new or increased supply is such that the connection cannot be made or maintained without the laying of a new main, or the enlarging of an existing main, or the construction or enlarging of any other works required for the conveyance of gas,

the transporter may, if he thinks fit, refuse to make or maintain the connection unless that person enters into a written contract with the transporter to make such payments to him as he may reasonably require having regard to the expense to be incurred in laying or enlarging the main or constructing or enlarging the other works and the extent to which it is reasonable to expect that the transporter will recover that expense from elsewhere.

(11) If and to the extent that regulations made by the Director with the consent of the Secretary of State so provide, subsection (10) above shall have effect as if—

(a) the reference in paragraph (d) to the laying of a new main, the enlarging of an existing main or the construction or enlarging of any other works required for the conveyance of gas included a reference to a new main which had previously been laid, an existing main which had previously been enlarged or any other works required for the conveyance of gas which had previously been constructed or enlarged;

(b) the reference to the expense to be incurred in laying or enlarging the main or constructing or enlarging the other works included a reference to the expense which had been so incurred; and

(c) the reference to the extent to which it is reasonable to expect that the transporter will recover that expense from elsewhere included a reference to the extent to which the transporter had been able so to recover that expense.

(12) Subject to subsection (13) below, in this section “relevant main”, in relation to a public gas transporter, means any distribution main in his authorised area which is being used for the purpose of giving a supply of gas to any premises in that area at a rate not exceeding 75,000 therms a year.

(13) Any pipe which—

(a) vests in and becomes the property of a public gas transporter by virtue of subsection (6) above; and

(b) apart from this subsection, would be a relevant main for the purposes of this section,

shall be such a main if, and only if, it has been declared to be such a main by the transporter.

(14) A public gas transporter shall make a declaration under subsection (13) above in respect of each pipe falling within that subsection which is fit for the purpose of being a relevant main; and a declaration under that subsection shall not be capable of being revoked.]

Textual Amendments

F26 S. 10 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 4; S.I. 1996/218, art. 2

Valid from 01/10/2001

[F27 10A Restriction on use of certain pipe-lines for providing a supply. E+W+S

(1) Any pipe-line of a gas transporter—

(a) for the construction of which the execution of works has begun before the commencement of section 76 of the Utilities Act 2000 (abolition of geographical exclusivity of authorised areas of gas transporters); and

(b) which is situated in an area which, immediately before the commencement of that section, is the authorised area of a public gas transporter (the “other transporter”),

shall not be used for the purpose of giving a supply of gas to any premises in that area at a rate less than 2,196,000 kilowatt hours per year unless the other transporter consents in writing to such use.

(2) If the other transporter refuses or fails to give consent under subsection (1) consent may instead be given in writing by the Authority where it considers it appropriate to do so.

(3) Consent given under this section may not be withdrawn.

(4) In this section “pipe-line” has the same meaning as in the M4 Pipe-lines Act 1962.]

Textual Amendments

F27 S. 10A inserted (1.10.2001) by 2000 c. 27, s. 77(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Marginal Citations

M4 1962 c. 58.

[F28 11 Power to require security. E+W+S

(1) Where any person requires a connection in pursuance of paragraph (a) of section 10(2) above and a pipe falls to be supplied and laid by the public gas transporter in pursuance of that paragraph—

(a) the transporter may require that person to give him reasonable security for the payment to him of all money which may become due to him in respect of the supply and laying of the pipe; and

(b) if that person fails to give such security or, where any security given by him has become invalid or insufficient, fails to provide alternative or additional security, the transporter may if he thinks fit refuse to supply and lay the pipe for so long as the failure continues.

(2) Where any amount is deposited with a public gas transporter by way of security in pursuance of this section, the transporter shall pay interest on that amount, at such rate as may from time to time be fixed by the transporter with the approval of the Director, in respect of the period during which it remains in the hands of the transporter.

(3) In this section “connection” shall be construed in accordance with section 10(2) above.]

Textual Amendments

F28 S. 11 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 5; S.I. 1996/218, art. 2

[F29 Gas conveyed by Public Gas Transporters] E+W+S

Textual Amendments

F29 S. 12 and preceding cross-heading substituted for s. 12 (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 6; S.I. 1996/218, art. 2

[F30 12 Methods of calculating therms. E+W+S

(1) Except in prescribed cases, the number of therms or kilowatt hours conveyed by a public gas transporter to premises, or to pipe-line systems operated by other public gas transporters, shall be calculated in the prescribed manner—

(a) on the basis of calorific values of the gas determined by the transporter in accordance with regulations under this section, or so determined by another public gas transporter and adopted by the transporter in accordance with such regulations; or

(b) if and to the extent that regulations under this section so provide and the transporter thinks fit, on the basis of declared calorific values of the gas;

and regulations under this section shall be made by the Director with the consent of the Secretary of State.

(2) In this Part—

• “calorific value”, in relation to any gas, means the number of megajoules (gross) which would be produced by—

  (a)

  the combustion of one cubic metre of the gas measured at a temperature of 15°C and a pressure of 1013.25 millibars; or

  (b)

  if regulations under this section so provide, the combustion of one kilogram of the gas,

  containing in either case, if the Director so determines, such an amount of water vapour as is specified in the determination;

• “declared calorific value”, in relation to any gas conveyed by a public gas transporter, means a calorific value declared by the transporter in accordance with regulations under this section, or so declared by another public gas transporter and adopted by the transporter in accordance with such regulations.

(3) Regulations under this section may make provision as to the manner in which prescribed information with respect to the making of calculations in accordance with the regulations is to be made available to other licence holders and to the public.

(4) Regulations under this section made for the purposes of subsection (1)(a) above may make provision—

(a) for requiring determinations of calorific values of gas conveyed by public gas transporters to be made on the basis of samples of gas taken at such places or premises, at such times and in such manner as the Director may direct;

(b) for requiring such determinations to be made at such places or premises, at such times and in such manner as the Director may direct;

(c) as to the manner in which the results of such determinations are to be made available to other licence holders and to the public;

(d) for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by public gas transporters for the purpose of making such determinations;

(e) for requiring public gas transporters to carry out tests of apparatus and equipment so provided and maintained by them; and

(f) for requiring the results of such tests to be notified to the Director or to any person appointed under section 13(1) below, and to be made available to other licence holders and to the public.

(5) Regulations under this section made for the purposes of subsection (1)(b) above may make provision—

(a) for requiring declarations of calorific values of gas conveyed by public gas transporters to be made at such times and in such manner as the Director may direct;

(b) as to the times when such declarations are to take effect, and as to the manner in which the calorific values declared are to be made available to other licence holders and to the public;

(c) for imposing requirements on public gas transporters as to the correlation between—

(i) the calorific values of the gas conveyed by them for any period; and

(ii) the calorific values declared by them for that period;

(d) for requiring public gas transporters to carry out tests of gas for the purpose of ascertaining whether they are complying with the requirements of regulations made by virtue of paragraph (c) above;

(e) for requiring such tests to be carried out at such places or premises, at such times and in such manner as the Director may direct; and

(f) for requiring the results of such tests to be notified to the Director or to any person appointed under section 13(1) below, and to be made available to other licence holders and to the public.

(6) Subject to subsection (7) below, the Director may by notice in writing require a public gas transporter to give to the Director, or to any person appointed by him for the purpose, within such time and at such place as may be specified in the notice, such information as the Director may reasonably require for the purpose of making regulations under this section or section 13 below or of giving directions under such regulations.

(7) A public gas transporter shall not be required under subsection (6) above to give any information which he could not be compelled to give in evidence in civil proceedings before the court; and in this subsection “the court” means—

(a) in relation to England and Wales, the High Court;

(b) in relation to Scotland, the Court of Session.]

Textual Amendments

F30 S. 12 and preceding cross-heading substituted for s. 12 (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 6; S.I. 1996/218, art. 2

[F31 13 Calorific values: tests of apparatus etc. E+W+S

(1) The Director shall appoint competent and impartial persons—

(a) to carry out tests of apparatus and equipment provided and maintained by public gas transporters in pursuance of regulations made by virtue of subsection (4)(d) of section 12 above for the purpose of ascertaining whether they comply with the regulations;

(b) to carry out tests of gas conveyed by public gas transporters where the number of therms or kilowatt hours falls to be calculated in accordance with subsection (1)(b) of that section for the purpose of ascertaining whether the transporters are complying with the requirements of regulations made by virtue of subsection (5)(c) of that section; and

(c) generally to assist the Director in exercising his functions under, or under regulations made under, this section or that section.

(2) Regulations under this section, which shall be made by the Director with the consent of the Secretary of State, may make provision—

(a) for requiring such tests as are mentioned in subsection (1)(b) above to be carried out at such places or premises as the Director may direct;

(b) for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by public gas transporters for the purpose of carrying out such tests;

(c) for requiring samples of gas to be taken by public gas transporters at such places or premises, at such times and in such manner as the Director may direct; and

(d) for requiring samples of gas so taken to be provided by public gas transporters, for the purpose of carrying out such tests, at such places or premises, at such times and in such manner as the Director may direct.

(3) Regulations under this section may make provision—

(a) for persons representing the public gas transporter concerned to be present during the carrying out of such tests as are mentioned in subsection (1) above;

(b) as to the manner in which the results of such tests are to be made available to other licence holders and to the public; and

(c) for conferring powers of entry on property owned or occupied by public gas transporters for the purpose of carrying out such tests and otherwise for the purposes of this section or section 12 above.

(4) There shall be paid out of money provided by Parliament to persons appointed under subsection (1) above who are members of the Director’s staff such remuneration and such allowances as may be determined by the Director with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of such persons.

(5) Every person who is a public gas transporter during any period shall pay to the Director such proportion (if any) as the Director may determine of—

(a) any sums paid by him under subsection (4) above in respect of that period; and

(b) such part of his other expenses for that period as he may with the consent of the Treasury determine to be attributable to his functions under section 12 above or this section;

and any liability under this subsection to pay to the Director sums on account of pensions (whether paid by him under subsection (4) above or otherwise) shall, if the Director so determines, be satisfied by way of contributions calculated, at such rate as may be determined by the Treasury, by reference to remuneration.

(6) Any sums received by the Director under this section shall be paid into the Consolidated Fund.]

Textual Amendments

F31 S. 13 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 7; S.I. 1996/218, art. 2

F32 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F32 S. 14 repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 8, Sch. 6; S.I. 1996/218, art. 2

F33 14A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F33 S. 14A repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 9, Sch. 6; S.I. 1996/218, art. 2

F34 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F34 S. 15 repealed (1.3.1996) by 1995 c. 45, ss. 9(3), 17(5), Sch. 6; S.I. 1996/218, art. 2

F35 15B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F35 S. 15B repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 11, Sch. 6; S.I. 1996/218, art. 2

[F36 Gas conveyed by public gas transporters and others] E+W+S

Textual Amendments

F36 S. 16 and cross-heading preceding it substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 12; S.I. 1996/218, art. 2

F37 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F37 S. 16 repealed (1.4.1996) by S.I. 1996/551, reg. 12(1)

[F38 17 Meter testing and stamping. E+W+S

(1) No meter shall be used for the purpose of ascertaining the quantity of gas supplied through pipes to any person unless it is stamped either by, or on the authority of, a meter examiner appointed under this section or in such other manner as may be authorised by regulations under this section.

(2) Subject to subsections (3) to (5) below, it shall be the duty of a meter examiner who is a member of the Director’s staff, on being required to do so by any person and on payment of the requisite fee—

(a) to examine any meter used or intended to be used for ascertaining the quantity of gas supplied to any person; and

(b) to stamp, or authorise the stamping of, that meter.

(3) A meter examiner shall not stamp, or authorise the stamping of, any meter unless he is satisfied that it is of such pattern and construction and is marked in such manner as is approved by the Director and that the meter conforms with such standards as may be prescribed for the purposes of this subsection.

(4) A meter examiner may stamp or authorise another person to stamp a meter, notwithstanding that he has not himself examined it, if—

(a) the meter was manufactured or repaired by the person submitting it to the examiner;

(b) that person has obtained the consent of the Director to his submission; and

(c) any conditions subject to which the consent was given have been satisfied.

(5) A meter examiner may authorise another person to stamp a meter, notwithstanding that he has not himself examined it, if—

(a) the meter was manufactured or repaired by that person;

(b) that person has obtained the consent of the Director to his stamping of the meter; and

(c) any conditions subject to which the consent was given have been satisfied.

(6) The Director shall appoint competent and impartial persons as meter examiners for the purposes of this section.

(7) There shall be paid out of money provided by Parliament to meter examiners who are members of the Director’s staff such remuneration and such allowances as may be determined by the Director with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of such examiners.

(8) All fees payable to meter examiners who are members of the Director’s staff for the performance of functions conferred by or under this section shall be paid to the Director; and any sums received by him under this subsection shall be paid into the Consolidated Fund.

(9) Regulations under this section, which shall be made by the Director with the consent of the Secretary of State, may make provision—

(a) for re-examining meters already stamped, and for the cancellation of stamps in the case of meters which no longer conform with the prescribed standards and in such other circumstances as may be prescribed;

(b) for requiring meters to be periodically overhauled; and

(c) for the revocation of any approval given by the Director to any particular pattern or construction of meter, and for requiring existing meters of that pattern or construction to be replaced within such period as may be prescribed for the purposes of this subsection.

(10) The fees to be paid to meter examiners who are members of the Director’s staff for the performance of functions conferred by or under this section, and the persons by whom they are to be paid, shall be such as the Director may, with the approval of the Treasury, from time to time determine; and a determination under this subsection may—

(a) make different provision for different areas or in relation to different cases or different circumstances; and

(b) make such supplementary, incidental or transitional provision as the Director considers necessary or expedient.

(11) If any person supplies gas through a meter which has not been stamped under this section, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(12) Where the commission by any person of an offence under subsection (11) above is due to the act or default of some other person, that other person shall be guilty of the offence; and a person may be charged with and convicted of the offence by virtue of this subsection whether or not proceedings are taken against the first-mentioned person.

(13) In any proceedings for an offence under subsection (11) above it shall be a defence for the person charged to prove that he took all reasonable steps and exercised all due diligence to avoid committing the offence.

(14) The preceding provisions of this section shall not have effect in relation to the supply of gas to a person under any agreement providing for the quantity of gas supplied to him to be ascertained by a meter designed for rates of flow which, if measured at a temperature of 15°C and a pressure of 1013.25 millibars, would exceed 1600 cubic metres an hour.

(15) Regulations under this section may provide that subsection (14) above shall have effect as if for the number of cubic metres an hour which is for the time being applicable for the purposes of that subsection there were substituted such lower number of cubic metres an hour as the Director considers appropriate.]

Textual Amendments

F38 S. 17 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 13; S.I. 1996/218, art. 2

18 Safety regulations. E+W+S

F39 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The Secretary of State may by regulations make provision for empowering any officer authorised by the relevant authority—

(a) to enter any premises in which there is a service pipe connected with a gas main, for the purpose of inspecting any gas fitting on the premises, any flue or means of ventilation used in connection with any such gas fitting, or [F40 any part of the gas system on the premises, that is to say,]any service pipe or other apparatus (not being a gas fitting) which is on the premises and is used for the [F40 conveyance or]supply of gas or is connected with a gas main;

(b) where he so enters any such premises, to examine or apply any test to any such object as is mentioned in paragraph (a) above and (where the object is a gas fitting) to verify what supply of air is available for it; and

(c) where in his opinion it is necessary to do so for the purpose of averting danger to life or property, and notwithstanding any contract previously existing, to disconnect and seal off any gas fitting or any part of the [F41 gas system on the premises, or disconnect the premises or, if the premises are not connected, to signify the refusal of the relevant authority to convey gas or, as the case may be, allow gas to be conveyed to the premises].

(3) Where any regulations under subsection (2) above confer any power in accordance with paragraph (c) of that subsection, the regulations shall also include provision—

(a) for securing that, where any such power is exercised, the consumer will be notified as to the nature of the defect or other circumstances in consequence of which it has been exercised;

(b) for enabling any consumer so notified to appeal to the Secretary of State on the grounds that the defect or other circumstances in question did not constitute a danger such as to justify the action taken in the exercise of the power, or did not exist or have ceased to exist; and

(c) for enabling the Secretary of State to give such directions as may in accordance with the regulations be determined by him to be appropriate in consequence of any such appeal.

(4) Regulations made under subsection (2) above may make provision for prohibiting any person, except with the consent of the relevant authority or in pursuance of any directions given by the Secretary of State as mentioned in subsection (3)(c) above, from—

(a) reconnecting any gas fitting or [F42 any part of any gas system] which has been disconnected by or on behalf of the relevant authority in exercise of a power conferred by the regulations; or

(b) [F43 reconnecting any premises which have been disconnected] by or on behalf of the relevant authority in the exercise of any such power; or

(c) causing gas from a gas main to be [F44 conveyed] to any premises where in pursuance of the regulations the refusal of the relevant authority to [F45 convey gas or, as the case may be, allow gas to be conveyed] to those premises has been signified and that refusal has not been withdrawn.

(5) Where in pursuance of any powers conferred by regulations made under subsection (2) above, entry is made on any premises by an officer authorised by the relevant authority—

(a) the officer shall ensure that the premises are left no less secure by reason of the entry; and

(b) the relevant authority shall make good, or pay compensation for, any damage caused by the officer, or by any person accompanying him in entering the premises, in taking any action therein authorised by the regulations, or in making the premises secure.

(6) Any officer exercising powers of entry conferred by regulations made under subsection (2) above may be accompanied by such persons as may be necessary or expedient for the purpose for which entry is made, or for the purposes of subsection (5) above.

(7) If any person intentionally obstructs any officer exercising powers of entry conferred by regulations made under subsection (2) above, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(8) The M5 Rights of Entry (Gas and Electricity Boards) Act 1954 (entry under a justice’s warrant) shall apply in relation to any powers of entry conferred by regulations made under subsection (2) above as if [F46 any reference to a gas operator were a reference to the relevant authority].

[F47 (9) In this section “the relevant authority”—

(a) in relation to dangers arising from the conveyance of gas by a public gas transporter, or from the use of gas conveyed by such a transporter, means that transporter; and

(b) in relation to dangers arising from the conveyance of gas by a person other than a public gas transporter, or from the use of gas conveyed by such a person, means the Secretary of State.

(10) Where the relevant authority is a public gas transporter, any reference in this section to any officer authorised by the authority includes a reference to any officer authorised by another such transporter with whom the authority has made arrangements for officers authorised by the other transporter to discharge any functions of the authority under this section.

(11) Except in cases of emergency, no officer shall be authorised by a public gas transporter to exercise any powers of entry conferred by regulations under this section unless the transporter has taken all reasonable steps to ensure that he is a fit and proper person to exercise those powers.]

Textual Amendments

F39 S. 18(1) repealed (6.3.1992) by Offshore Safety Act 1992 (c. 15), ss. 3(3)(a), 7(2), Sch. 2.

F40 Words in s. 18(2)(a) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(1)(a); S.I. 1996/218, art. 2

F41 Words in s. 18(2)(c) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(1)(b); S.I. 1996/218, art. 2

F42 Words in s. 18(4)(a) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(2)(a); S.I. 1996/218, art. 2

F43 Words in s. 18(4)(b) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(2)(b); S.I. 1996/218, art. 2

F44 Word in s. 18(4)(c) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(2)(c); S.I. 1996/218, art. 2

F45 Words in s. 18(4)(c) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(2)(c); S.I. 1996/218, art. 2

F46 Words in s. 18(8) substituted for s. 18(8)(a)(b) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(3); S.I. 1996/218, art. 2

F47 S. 18(9)-(11) substituted for s. 18(9) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(4); S.I. 1996/218, art. 2

Marginal Citations

M5 1954 c. 21.

[F48 18A Gas escape regulations. E+W+S

(1) The Secretary of State may by regulations make provision—

(a) for empowering any officer authorised by a public gas transporter, if the transporter has reasonable cause to suspect—

(i) that gas conveyed by the transporter is escaping, or may escape, in any premises; or

(ii) that gas so conveyed which has escaped has entered, or may enter, any premises,

to enter the premises, to carry out any work necessary to prevent the escape of gas and to take any other steps necessary to avert danger to life or property; and

(b) for empowering any officer so authorised, if the transporter has reasonable cause to suspect—

(i) that gas conveyed through pipes by some other person is escaping, or may escape, in any premises; or

(ii) that gas so conveyed which has escaped has entered, or may enter, any premises,

to enter the premises and take any steps necessary to avert danger to life or property.

(2) Subsections (5) to (7) and (11) of section 18 above shall apply for the purposes of this section as if—

(a) any reference to subsection (2) of that section were a reference to subsection (1) above;

(b) any reference to the relevant authority were a reference to a public gas transporter;

(c) any reference to subsection (5) of that section were a reference to that subsection as applied by this subsection; and

(d) the reference in subsection (11) of that section to regulations under that section were a reference to regulations under this section.

(3) The M6 Rights of Entry (Gas and Electricity Boards) Act 1954 (entry under a justice’s warrant) shall apply in relation to any powers of entry conferred by regulations made under subsection (1) above.

(4) Any reference in this section to any officer authorised by a public gas transporter includes a reference to any officer authorised by another such transporter with whom the transporter has made arrangements for officers authorised by the other transporter to discharge any functions under this section of officers authorised by the transporter.]

Textual Amendments

F48 S. 18A inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 15; S.I. 1996/218, art. 2

Marginal Citations

M6 1954 c.21.

[F49 Use by other persons of public gas transporter’s pipe-line systems] E+W+S

Textual Amendments

F49 S. 19 and preceding cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 16; S.I. 1996/218, art. 2

[F50 19 Acquisition of rights to use pipe-line systems. E+W+S

(1) In the case of a pipe-line system operated by a public gas transporter, any person may, after giving the transporter not less than 28 days’ notice, apply to the Director for directions under this section which would secure to the applicant a right of a description specified in the application to have conveyed by the system gas which—

(a) is of a kind so specified; and

(b) is of, or of a kind similar to, the kind which the system is designed to convey.

(2) Where an application is made under subsection (1) above, it shall be the duty of the Director—

(a) to decide whether the application is to be adjourned (so as to enable negotiations or further negotiations to take place), considered further or rejected;

(b) to give notice of his decision to the applicant;

(c) in the case of a decision that the application is to be considered further, to give to the transporter, to the Health and Safety Executive and to any person who has a right to have gas conveyed by the pipe-line system, notice that the application is to be so considered and an opportunity of being heard about the matter.

(3) Where, after further considering an application under subsection (1) above, the Director is satisfied that the giving of directions under this section would not prejudice the efficient operation of the pipe-line system, or the conveyance by the system of—

(a) the quantities of gas which the public gas transporter requires or may reasonably be expected to require to be conveyed by the system to enable the transporter to comply with the conditions of his licence and to perform his contractual obligations;

(b) the quantities of gas which any person who has a right to have gas conveyed by the system is entitled to require to be so conveyed in the exercise of that right,

the Director may give such directions to the transporter.

(4) Directions under this section may—

(a) specify the terms on which the Director considers the public gas transporter should enter into an agreement with the applicant for all or any of the following purposes—

(i) for securing to the applicant the right to have conveyed by the pipe-line system, for the period specified in the directions and in the quantities so specified or determined by or under the directions, gas which is of a kind so specified;

(ii) for securing that the exercise of that right is not prevented or impeded;

(iii) for regulating the charges which may be made for the conveyance of gas by virtue of that right;

(iv) for securing to the applicant such ancillary or incidental rights as the Director considers necessary or expedient, which may include the right to have a pipe-line of his connected to the pipe-line system by the transporter;

(b) specify the sums or the method of determining the sums which the Director considers should be paid by way of consideration for any such right; and

(c) require the transporter, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified.

(5) In giving any directions under this section, the Director shall apply the principle that the public gas transporter should be entitled to receive by way of charges for the conveyance of gas by virtue of the right—

(a) the appropriate proportion of the costs incurred by the transporter in administering, maintaining and operating his pipe-line system; and

(b) a return equal to the appropriate proportion of the return received by the transporter (otherwise than by virtue of the right) on the capital value of the system (including so much of that return as is set aside to meet the need from time to time to renew the system).

(6) In subsection (5) above “the appropriate proportion” means such proportion as properly—

(a) reflects the use made of the public gas transporter’s pipe-line system by virtue of the right as compared with the use made of that system for other purposes; and

(b) takes into account the sums paid by way of consideration for the right and any sums paid in respect of the pipe-line system (whether by the applicant or by any other person) in pursuance of directions under section 21(1) below.

(7) Any reference in this section to a right to have gas of any kind conveyed by a pipe-line system includes a reference to a right to introduce into, or take out of, such a system gas of that kind.]

Textual Amendments

F50 S. 19 and preceding cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 16; S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C24 S. 19 applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 4(2)

C25 S. 19(2)(c) applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 4(4)(c)

[F51 19A Application of section 19B to storage facilities. E+W+S

(1) Section 19B applies to storage facilities other than exempt storage facilities.

(2) An owner of a storage facility may apply in writing to the Director for an exemption for the facility or for facilities of a particular description.

(3) An exemption shall be given in writing and may be given—

(a) so as to have effect for an indefinite period or for a period specified in, or determined under, the exemption;

(b) unconditionally or subject to such conditions as the Director considers appropriate.

(4) An exemption may be revoked in accordance with its provisions and, in any event, may be revoked by giving a notice of revocation to the owner of the facility or facilities concerned not less than four months before the coming into force of the revocation.

(5) The Director shall give an exemption with respect to a facility or description of facility where he is satisfied that either—

(a) the requirements of section 19B(1), (3) and (7) and section 19E(3) are already met with respect to the facility or facilities concerned by existing market arrangements which promote competition; or

(b) use of the facility or facilities concerned by other persons is not necessary for the operation of an economically efficient gas market.]

Textual Amendments

F51 Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

[19B F52 Acquisition of rights to use storage facilities. E+W+S

(1) The owner of a storage facility to which this section applies (a “relevant facility”)—

(a) shall publish at least once in every year the main commercial conditions relating to the grant to another person of a right to have gas stored in the facility on that person’s behalf; and

(b) shall publish any changes to the published conditions as soon as they become effective.

(2) In subsection (1) “year” means any year ending with 9th August.

(3) The owner of a relevant facility shall ensure that the conditions which he is required to publish under subsection (1) do not discriminate against any applicants or descriptions of applicants, or any potential applicants or descriptions of potential applicants, for a right to have gas stored in the facility.

(4) Any person who seeks a right to have gas stored on his behalf in a relevant facility (“the applicant”) shall, before making an application to the Director under subsection (8), apply to the owner of the facility for the right.

(5) An application under subsection (4) shall be made by giving notice to the owner specifying what is being sought.

(6) Such a notice shall, in particular, specify—

(a) the period during which the gas is to be stored in the facility;

(b) the kind of gas to be stored (which must be of, or similar to, the kind which the facility is designed to store); and

(c) the quantities of gas to be stored.

(7) Where an applicant gives notice under subsection (5), he and the owner of the facility shall negotiate in good faith and endeavour to reach agreement on the application.

(8) If the owner and the applicant do not reach any such agreement, the applicant may apply to the Director for directions under subsection (11) which would secure to the applicant the right specified in the notice under subsection (5).

(9) The Director shall not entertain an application under subsection (8) unless he is satisfied that the parties have had a reasonable time in which to fulfil their duties under subsection (7).

(10) Where a person applies to the Director under subsection (8) and the Director is satisfied as mentioned in subsection (9), the Director shall—

(a) decide whether the application is to be adjourned (so as to enable further negotiations to take place), considered further or rejected;

(b) give notice of his decision to the applicant; and

(c) in the case of a decision that the application is to be considered further, give to the owner of the facility, the Health and Safety Executive and any person who has a right to have gas stored in the facility notice that the application is to be so considered and an opportunity of being heard on the matter.

(11) Where, after considering an application under subsection (8), the Director is satisfied that the giving of directions under this subsection would not prejudice the efficient operation of the facility, or the storage in the facility of—

(a) the quantities of gas which the owner of the facility requires or may reasonably be expected to require to be stored in the facility; and

(b) the quantities of gas which any person who has a right to have gas stored in the facility is entitled to require to be so stored in the exercise of that right;

the Director may give such directions to the owner of the facility.

(12) Directions under subsection (11) may—

(a) specify the terms on which the Director considers the owner of the facility should enter into an agreement with the applicant for all or any of the following purposes—

(i) for securing to the applicant the right to have stored in the facility, for the period specified in the directions and in the quantities so specified or determined by or under the directions, gas which is of a kind so specified;

(ii) for securing that the exercise of that right is not prevented or impeded;

(iii) for regulating the charges which may be made for the storage of gas by virtue of that right;

(iv) for securing to the applicant such ancillary or incidental rights as the Director considers necessary or expedient (which may include, in particular, a right to have a pipeline of his connected to the facility by the owner);

(b) specify the sums or the method of determining the sums which the Director considers should be paid by way of consideration for any such right; and

(c) require the owner, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified.]

Textual Amendments

F52 Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

[19C F53 Application of section 19D to LNG facilities. E+W+S

(1) Section 19D applies to LNG facilities other than exempt LNG facilities.

(2) An owner of an LNG facility may apply in writing to the Director for an exemption for the facility or for facilities of a particular description.

(3) An exemption shall be given in writing and may be given—

(a) so as to have effect for an indefinite period or for a period specified in, or determined under, the exemption;

(b) unconditionally or subject to such conditions as the Director considers appropriate.

(4) An exemption may be revoked in accordance with its provisions and, in any event, may be revoked by giving a notice of revocation to the owner of the facility or facilities concerned not less than four months before the coming into force of the revocation.

(5) The Director shall give an exemption with respect to a facility or description of facility where he is satisfied that the requirements of section 19D(1), (3) and (7) and section 19E(3) are already met with respect to the facility or facilities concerned by existing market arrangements which promote competition.]

Textual Amendments

F53 Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

[19D F54 Acquisition of rights to use LNG facilities. E+W+S

(1) The owner of an LNG facility to which this section applies (a “relevant facility”)—

(a) shall publish at least once in every year the main commercial conditions relating to the grant to another person of a right to have LNG treated in the facility on that person’s behalf; and

(b) shall publish any changes to the published conditions as soon as they become effective.

(2) In subsection (1) “year” means any year ending with 9th August.

(3) The owner of a relevant facility shall ensure that the conditions which he is required to publish under subsection (1) do not discriminate against any applicants or descriptions of applicants, or any potential applicants or descriptions of potential applicants, for a right to have LNG treated in the facility.

(4) Any person who seeks a right to have LNG treated on his behalf in a relevant facility (“the applicant”) shall, before making an application to the Director under subsection (8), apply to the owner of the facility for the right.

(5) An application under subsection (4) shall be made by giving notice to the owner specifying what is being sought.

(6) Such a notice shall, in particular, specify—

(a) the period during which LNG is to be treated in the facility;

(b) the kind of LNG to be treated (which must be of, or similar to, the kind which the facility is designed to treat); and

(c) the quantities of LNG to be treated.

(7) Where an applicant gives notice under subsection (5), he and the owner of the facility shall negotiate in good faith and endeavour to reach agreement on the application.

(8) If the owner and the applicant do not reach any such agreement, the applicant may apply to the Director for directions under subsection (11) which would secure to the applicant the right specified in the notice under subsection (5).

(9) The Director shall not entertain an application under subsection (8) unless he is satisfied that the parties have had a reasonable time in which to fulfil their duties under subsection (7).

(10) Where a person applies to the Director under subsection (8) and the Director is satisfied as mentioned in subsection (9), the Director shall—

(a) decide whether the application is to be adjourned (so as to enable further negotiations to take place), considered further or rejected;

(b) give notice of his decision to the applicant; and

(c) in the case of a decision that the application is to be considered further, give to the owner of the facility, the Health and Safety Executive and any person who has a right to have LNG treated in the facility notice that the application is to be so considered and an opportunity of being heard about the matter.

(11) Where, after considering an application under subsection (8), the Director is satisfied that the giving of directions under this subsection would not prejudice the efficient operation of the facility, or the treatment in the facility of—

(a) the quantities of LNG which the owner of the facility requires or may reasonably be expected to require to be treated in the facility; and

(b) the quantities of LNG which any person who has a right to have LNG treated in the facility is entitled to require to be so treated in the exercise of that right;

the Director may give such directions to the owner of the facility.

(12) Directions under subsection (11) may—

(a) specify the terms on which the Director considers the owner of the facility should enter into an agreement with the applicant for all or any of the following purposes—

(i) for securing to the applicant the right to have treated in the facility, for the period specified in the directions and in the quantities so specified or determined by or under the directions, LNG which is of a kind so specified;

(ii) for securing that the exercise of that right is not prevented or impeded;

(iii) for regulating the charges which may be made for the treatment of LNG by virtue of that right;

(iv) for securing to the applicant such ancillary or incidental rights as the Director considers necessary or expedient (which may include, in particular, a right to have a pipeline of his connected to the facility by the owner);

(b) specify the sums or the method of determining the sums which the Director considers should be paid by way of consideration for any such right; and

(c) require the owner, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified.]

Textual Amendments

F54 Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

[F55 19E Sections 19A to 19D: supplemental. E+W+S

(1) In sections 19A to 19D and this section—

• “accounting information” means such accounting records as would be required by section 221 of the Companies Act 1985 in respect of each of the storage or (as the case may be) treatment activities undertaken by the owner of the facility if those activities were the only business undertaken by the owner and the owner were a person to whom that section applied;

• “LNG” means liquid gas, and gas which has been, or is to be, treated in an LNG facility;

• “LNG facility” means a facility for any or all of the following: the liquefaction of gas, the storage of LNG in its liquid form and the re-gasification of liquid gas;

• “main commercial conditions” means—

  (a)

  such information as would enable a potential applicant for a right to have gas stored or (as the case may be) treated in a relevant facility to make a reasonable assessment of the cost of, or the method of calculating the cost of, acquiring that right;

  (b)

  the other significant terms on which such a right would be granted; and

  (c)

  such additional information as the Director may from time to time specify by notice;

• “owner” in relation to a storage facility or an LNG facility includes any person occupying or having control of the facility;

• “significant transaction” means—

  (a)

  any transaction which relates to rights to have gas stored in a gas storage facility, or (as the case may be) treated in an LNG facility; and

  (b)

  any other transaction which is of a description specified from time to time by the Director by notice;

• “storage facility” means a facility in Great Britain (excluding the territorial sea adjacent to the United Kingdom) for the storage of gas in cavities in strata or in porous strata, provided that the facility is used for the storage of gas which has previously been conveyed in a pipeline system operated by a public gas transporter; and

• “treatment” in relation to LNG in an LNG facility, includes liquefaction, storage in liquid form and regasification of the LNG, and “treat” shall be construed accordingly.

(2) For the purpose of considering an application under section 19B(8) or 19D(8), the Director may by notice require the owner of the relevant facility to provide him with accounting information and details of the main commercial terms of any significant transactions with associated undertakings.

(3) Owners of relevant facilities shall keep their internal accounts in such manner as will enable them to provide accounting information if required to do so by a notice under subsection (2).

(4) For the purposes of sections 19B and 19D, an undertaking is an associated undertaking of another undertaking if one of the undertakings has control of the other, or both undertakings are under the control of the same person or persons; and subsections (2) to (5) of section 416 of the Income and Corporation Taxes Act 1988 shall apply with any necessary modifications for the purposes of this subsection as they apply for the purposes of Part XI of that Act.

(5) Any reference in section 19B to a right to have gas or gas of any kind stored in a storage facility includes a reference to a right to introduce into, or take out of, such a facility gas or gas of that kind.

(6) Any reference in section 19D to a right to have LNG or LNG of any kind treated in an LNG facility includes a reference to a right to introduce into, or take out of, such a facility LNG or LNG of that kind.]

Textual Amendments

F55 Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

F56 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F56 S. 20 repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 17, Sch. 6; S.I. 1996/218, art. 2

21 Increase of capacity etc. of pipelines. E+W+S

[F57 (1) If in the case of a pipe-line system operated by a public gas transporter it appears to the Director, on the application of a person other than the transporter, that the system can and should be modified—

(a) by installing in it a junction through which another pipe-line may be connected to the system; or

(b) by modifying apparatus and works associated with a high pressure pipe-line so as to increase the capacity of the pipe-line,

then, subject to subsection (3) below, the Director may, after giving to the transporter an opportunity of being heard about the matter and giving to the Health and Safety Executive notice of his proposed directions, give directions to the transporter in accordance with subsection (2) below in consequence of the application.]

(2) Directions under subsection (1) above may—

(a) specify the modifications which the Director considers should be made in consequence of the application;

(b) specify the sums or the method of determining the sums which the Director considers should be paid to the [F58 public gas transporter] by the applicant [F59 by way of consideration for] the modifications;

(c) specify the arrangements which the Director considers should be made by the applicant, within a period specified in that behalf in the directions, for the purpose of securing that those sums will be paid to [F60 the transporter] if he carries out the modifications;

(d) require [F60 the transporter], if the applicant makes those arrangements within the period aforesaid, to carry out the modifications within a period specified in that behalf in the directions.

(3) Where the Director proposes to give directions under subsection (1) above, it shall be his duty before doing so to give to the applicant—

(a) particulars of the modifications which he proposes to specify in the directions; and

(b) an opportunity of making an application under subsection (1) of section 19 above in respect of the [F61 pipe-line system];

and that section shall have effect in relation to such an application made by virtue of this subsection as if for references to a [F61 pipe-line system] there were substituted references to the [F61 pipe-line system] as it would be with those modifications and the reference in subsection (2) to the Director deciding whether the application is to be adjourned were omitted.

[F62 (3A) In giving any directions under this section, the Director shall apply the principle that, in so far as the following, namely—

(a) the cost of carrying out the modifications; and

(b) a reasonable element of profit,

will not be recoverable by the public gas transporter from elsewhere, the transporter should be entitled to receive them by way of consideration for carrying out the modifications.]

(4) References in this section to modifications include, in the case of modifications to any apparatus and works, references to changes in, substitutions for and additions to the apparatus and works; and the reference in subsection (1) above to apparatus and works associated with a pipe-line shall be construed in accordance with section 65(2) of the M7 Pipe-lines Act 1962.

[F63 (5) In this section—

• “high pressure pipe-line” means any pipe-line which has a design operating pressure exceeding 7 bar gauge;

• “pipe-line” has the same meaning as in the M8 Pipe-lines Act 1962.]

Textual Amendments

F57 S. 21(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(1); S.I. 1996/218, art. 2

F58 Words in s. 21(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(2)(a); S.I. 1996/218, art. 2

F59 Words in s. 21(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(2)(b); S.I. 1996/218, art. 2

F60 Words in s. 21(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(2)(c); S.I. 1996/218, art. 2

F61 Words in s. 21(3) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(3); S.I. 1996/218, art. 2

F62 S. 21(3A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(4); S.I. 1996/218, art. 2

F63 S. 21(5) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(5); S.I. 1996/218, art. 2

Marginal Citations

M7 1962 c. 58.

M8 1962 c.58.

22 Effect of directions. E+W+S

(1) The obligation to comply with any directions under section [F64 section 19, 19B(11), 19D(11) or 21(1)] above (in this section referred to as “relevant directions”) [F65 and the obligation to comply with any duty in section 19B(7) and 19D(7) (in this section referred to as “relevant duties”) are duties] owed to any person who may be affected by a contravention of them.

(2) Where a duty is owed by virtue of subsection (1) above to any person any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

(3) In any proceedings brought against any person in pursuance of subsection (2) above, it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the relevant directions [F66 or relevant duties].

(4) Without prejudice to any right which any person may have by virtue of subsection (2) above to bring civil proceedings in respect of any contravention or apprehended contravention of any relevant directions, compliance with any such directions shall be enforceable by civil proceedings by the Director for an injunction or interdict or for any other appropriate relief.

[F67 (5) Compliance with the duties in sections 19B(1) and (3), 19D(1) and (3) and section 19E(3) shall be enforceable by civil proceedings by the Director for an injunction or interdict or for any other appropriate relief.]

Textual Amendments

F64 Words in s. 22(1) substituted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 2(a)

F65 Words in s. 22(1) substituted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 2(b)

F66 Words in s. 22(3) inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 2(c)

F67 S. 22(5) inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 2(d)

Modifications etc. (not altering text)

C26 S. 22 applied (with modifications) (1.3.1996) by 1995 c. 45, s. 12(5); S.I. 1996/218, art. 3

S. 22 applied (10.8.2000) by 1995 c. 45, s. 12(5) (as substituted (10.8.2000) by S.I. 2000/1937, reg. 2(3), Sch. 3 para. 4)

[F68 22A Construction of pipe-lines. E+W+S

(1) A public gas transporter shall not at any time execute in an authorised area of another public gas transporter any works for the construction of a pipe-line unless—

(a) he has given the other transporter a notice stating that he intends to construct the pipe-line;

(b) he has consulted with that transporter as to exactly where in that area the proposed pipe-line is to be located, having regard to the location of other pipe-lines in that area; and

(c) he has consulted with that transporter as to the manner in which—

(i) the safety of the pipe-line is to be secured; and

(ii) any escapes of gas (actual or suspected) from the pipe-line are to be dealt with.

(2) A notice under subsection (1)(a) above shall—

(a) specify the points between which the proposed pipe-line is to run and be accompanied by a map (drawn to an appropriate scale) on which is delineated the route which it is proposed to take;

(b) specify the length, diameter and operating pressure of the proposed pipe-line and the kind of gas which it is designed to convey; and

(c) contain such other particulars (if any) as may be prescribed.

(3) In this section—

• “construction”, in relation to a pipe-line, includes placing;

• “pipe-line” has the same meaning as in the Pipe-lines Act 1962.

(4) For the purposes of this section the execution of works in land for the purpose of determining whether or not it is suitable for the placing in it of a pipe-line and the carrying out of surveying operations for the purpose of settling the route of a proposed pipe-line shall be deemed not to constitute the execution of works for the construction of a pipe-line.]

Textual Amendments

F68 S. 22A inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 20; S.I. 1996/218, art. 2

[F69 Modification of licences] E+W+S

Textual Amendments

F69 S. 23 and preceding cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 21; S.I. 1996/218, art. 2

[F70 23 Modification by agreement. E+W+S

(1) Subject to the following provisions of this section, the Director may—

(a) modify the conditions of a particular licence; or

(b) modify the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section.

(2) Where at any time the Director modifies under subsection (1)(b) above the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, he—

(a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences under that section or, as the case may be, that subsection granted after that time; and

(b) may make such incidental or consequential modifications as he considers necessary or expedient of any conditions of licences under that provision granted before that time.

(3) Before making modifications under this section, the Director shall give notice—

(a) stating that he proposes to make the modifications and setting out their effect;

(b) stating the reasons why he proposes to make the modifications; and

(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(4) A notice under subsection (3) above shall be given—

(a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and

(b) by sending a copy of the notice to the holder of the licence or, as the case may be, the relevant licence holders, to the Secretary of State, to the Health and Safety Executive and to the Council.

(5) If, within the time specified in the notice under subsection (3) above, the Secretary of State directs the Director not to make any modification, the Director shall comply with the direction.

(6) The Director shall not make any modifications under subsection (1)(a) above unless—

(a) the holder of the licence has consented to the modifications; and

(b) in the case of standard conditions of a licence under subsection (1) or (2) of section 7A above, the Director is of the opinion that the modifications—

(i) are requisite to meet the circumstances of the particular case; and

(ii) are such that no other holder of such a licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence).

(7) The Director shall not make any modifications under subsection (1)(b) above unless—

(a) the percentage given by each of subsections (8) and (9) below is not less than 90 per cent;

(b) the percentage given by subsection (8) below is not less than 90 per cent and no relevant activities have been carried on by relevant licence holders; or

(c) subsection (10) below applies.

(8) The percentage given by this subsection is the fraction given by the following formula expressed as a percentage, namely—

where—C = the number of consenting holders;N = the number of non-consenting holders.

(9) The percentage given by this subsection is the fraction given by the following formula expressed as a percentage, namely—

where—C = the volume of gas to which relevant activities carried on by consenting holders relate;N = the volume of gas to which relevant activities carried on by non-consenting holders relate,as estimated (in each case) by the Director on the basis of the information available to him.

(10) This subsection applies where the Director is of the opinion—

(a) that the effect of the standard conditions is such as to impose a burden affecting relevant licence holders in the carrying on of activities to which the modifications relate;

(b) that the modifications would remove or reduce the burden without removing any necessary protection; and

(c) in the case of a licence under subsection (1) or (2) of section 7A above, that the modifications are such that no holder of such a licence would be unduly disadvantaged in competing with other holders of such licences.

(11) Where at any time the Director modifies standard conditions under subsection (2)(a) above for the purposes of their incorporation in licences under section 7 or 7A(1) or (2) above granted after that time, he shall publish the modifications in such manner as he considers appropriate.

(12) In this section, in relation to modifications of standard conditions under subsection (1)(b) above—

• “consenting holder” means a relevant licence holder who has consented to the modifications;

• “non-consenting holder” means a relevant licence holder who has not so consented;

• “relevant activity” means an activity to which the modifications relate and which is carried on in the period of twelve months immediately preceding the making of the modifications;

• “relevant licence holder” means a licence holder whose licence incorporates the standard conditions.]

Textual Amendments

F70 S. 23 and preceding cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 21; S.I. 1996/218, art. 2

24 Modification references to Monopolies Commission. E+W+S

[F71 (1) The Director may make to the [F72 Competition Commission] a reference which is so framed as to require the Commission to investigate and report on the questions—

(a) whether any matters which relate to—

(i) the carrying on of activities authorised or required by a particular licence, or

(ii) the storage of gas on terms which have been determined by the holder of a particular licence under section 7 above, or could have been determined by the holder if he had thought fit or had been required to determine them by or under a condition of the licence,

and which are specified in the reference operate, or may be expected to operate, against the public interest; and

(b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the relevant conditions, that is to say, the conditions of the licence.

(1A) The Director may make to the [F73 Competition Commission] a reference which is so framed as to require the Commission to investigate and report on the questions—

(a) whether any matters which relate to the carrying on of activities authorised or required by—

(i) licences under section 7 above,

(ii) licences under subsection (1) of section 7A above which incorporate the standard conditions, or

(iii) licences under subsection (2) of that section,

and which are specified in the reference operate, or may be expected to operate, against the public interest; and

(b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the relevant conditions, that is to say, the standard conditions of licences under that section or, as the case may be, that subsection.]

(2) The Director may, at any time, by notice given to the [F74 Competition Commission]vary a reference under this section by adding to the matters specified in the reference or by excluding from the reference some or all of the matters so specified; and on receipt of such notice the Commission shall give effect to the variation.

(3) The Director may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the [F75 Competition Commission]in carrying out the investigation on the reference—

(a) any effects adverse to the public interest which, in his opinion, the matters specified in the reference or variation have or may be expected to have; and

(b) any modifications of the [F76 relevant conditions] by which, in his opinion, those effects could be remedied or prevented.

(4) As soon as practicable after making a reference under this section or a variation of such a reference, the Director—

(a) shall send a copy of the reference or variation to [F77 the holder of the licence or, as the case may be, the relevant licence holders] and to the Council; and

(b) publish particulars of the reference or variation in such manner as he considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it.

[F78 (4A) The Director shall also send a copy of a reference under subsection (1A) above, or a variation of such a reference, to the Secretary of State; and if, before the end of the period of 28 days beginning with the day on which he receives the copy of the reference or variation, the Secretary of State directs the [F79 Competition Commission]not to proceed with the reference or, as the case may require, not to give effect to the variation, the Commission shall comply with the direction.]

(5) It shall be the duty of the Director, for the purpose of assisting the [F80 Competition Commission]in carrying out an investigation on a reference under this section, to give to the Commission—

(a) any information which is in his possession and which relates to matters falling within the scope of the investigation, and which is either requested by the Commission for that purpose or is information which in his opinion it would be appropriate for that purpose to give to the Commission without any such request; and

(b) any other assistance which the Commission may require, and which it is within his power to give, in relation to any such matters,

and the Commission, for the purpose of carrying out any such investigation, shall take account of any information given to them for that purpose under this subsection.

(6) In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the [F81 Competition Commission]shall have regard to the matters as respects which duties are imposed on the Secretary of State and the Director by [F82 sections 4AA, 4AB and 4A] above.

[F83 (7) The provisions mentioned in subsection (7A) are to apply in relation to references under this section as if—

(a) the functions of the Competition Commission in relation to those references were functions under the M9 Fair Trading Act 1973;

(b) the expression “merger reference” included a reference under this section;

(c) in section 70 of the M10 Fair Trading Act 1973—

(i) references to the Secretary of State were references to the Director, and

(ii) the reference to three months were a reference to six months.

(7A) The provisions are—

(a) sections 70 (time limit for report on merger) and 85 (attendance of witnesses and production of documents) of the Fair Trading Act 1973;

(b) Part II of Schedule 7 to the Competition Act 1998 (performance of the Competition Commission’s general functions); and

(c) section 24 of the M11 Competition Act 1980 (modification of provisions about performance of such functions).]

[F84 (8) In this section and sections 25 and 26 below—

• “relevant conditions” has the meaning given by subsection (1) or (1A) above;

• “relevant licence holder”—

  (a)

  in relation to a reference under subsection (1A) above, means the holder of a licence to which the reference relates;

  (b)

  in relation to modifications of relevant conditions within the meaning given by that subsection, means the holder of a licence which incorporates the conditions.]

Textual Amendments

F71 S. 24(1)(1A) substituted for s. 24(1) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(1); S.I. 1996/218, art. 2

F72 Words in s. 24(1) substituted (1.4.1999) by S.I. 1999/506, art. 20(a)

F73 Words in s. 24(1A) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F74 Words in s. 24(2) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F75 Words in s. 24(3) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F76 Words in s. 24(3) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(2); S.I. 1996/218, art. 2

F77 Words in s. 24(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(3); S.I. 1996/218, art. 2

F78 S. 24(4A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(4); S.I. 1996/218, art. 2

F79 Words in s. 24(4A) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F80 Words in s. 24(5) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F81 Words in s. 24(6) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F82 Words in s. 24(6) substituted (20.12.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 8(3); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F83 S. 24(7)(7A) substituted for s. 24(7) (1.4.1999) by 1998 c. 41, ss. 66(5), Sch. 10 Pt. IV para. 10(2) (with s. 73); S.I. 1999/505, art. 2, Sch.

F84 S. 24(8) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(6); S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C27 S. 24 amended (16.5.2001) by 2000 c. 27, s. 104(1)(2) (with s. 104(6)); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10)

Marginal Citations

M9 1973 c. 41.

M10 1973 c. 41.

M11 1980 c. 21.

Valid from 20/06/2003

[F85 24A References under section 24: time limits E+W+S

(1) Every reference under section 24 above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made.

(2) A report of the Competition Commission on a reference under section 24 above shall not have effect (and no action shall be taken in relation to it under section 26 below) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by the Authority under subsection (3) below.

(3) The Authority may, if it has received representations on the subject from the Competition Commission and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months.

(4) No more than one extension is possible under subsection (3) above in relation to the same reference.

(5) The Authority shall, in the case of an extension made by it under subsection (3) above—

(a) publish that extension in such manner as it considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it; and

(b) send a copy of what has been published by it under paragraph (a) above to the holder of the licence or, as the case may be, the relevant licence holders.]

Textual Amendments

F85 S. 24A inserted (prosp.) by 2002 c. 40, ss. 278, 279, Sch. 25 para. 15(4)

Valid from 20/06/2003

[F86 24B References under section 24: powers of investigation E+W+S

(1) The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections (2) and (3) below, for the purposes of references under section 24 above as they apply for the purposes of references under that Part—

(a) section 109 (attendance of witnesses and production of documents etc.);

(b) section 110 (enforcement of powers under section 109: general);

(c) section 111 (penalties);

(d) section 112 (penalties: main procedural requirements);

(e) section 113 (payments and interest by instalments);

(f) section 114 (appeals in relation to penalties);

(g) section 115 (recovery of penalties); and

(h) section 116 (statement of policy).

(2) Section 110 shall, in its application by virtue of subsection (1) above, have effect as if—

(a) subsection (2) were omitted; and

(b) in subsection (9) the words from “or section” to “section 65(3))” were omitted.

(3) Section 111(5)(b)(ii) shall, in its application by virtue of subsection (1) above, have effect as if—

(a) for the words “published (or, in the case of a report under section 50 or 65, given)” there were substituted “made”;

(b) for the words “published (or given)”, in both places where they appear, there were substituted “made”; and

(c) the words “by this Part” were omitted.

(4) Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (1) above, have effect in relation to those sections as applied by virtue of that subsection.

(5) Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection.]

Textual Amendments

F86 S. 24B inserted (prosp.) by 2002 c. 40, ss. 278, 279, Sch. 25 para. 15(4)

25 Reports on modification references. E+W+S

(1) In making a report on a reference under section 24 above, the [F87 Competition Commission]—

(a) shall include in the report definite conclusions on the questions comprised in the reference together with such an account of their reasons for those conclusions as in their opinion is expedient for facilitating proper understanding of those questions and of their conclusions;

(b) where they conclude that any of the matters specified in the reference operate, or may be expected to operate, against the public interest, shall specify in the report the effects adverse to the public interest which those matters have or may be expected to have; and

(c) where they conclude that any adverse effects so specified could be remedied or prevented by modifications of [F88 the relevant conditions], shall specify in the report modifications by which those effects could be remedied or prevented.

F89 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Section 82 of the M12 Fair Trading Act 1973 (general provisions as to reports) shall apply in relation to reports of the [F87 Competition Commission] on references under section 24 above as it applies to reports of the Commission under that Act.

(4) A report of the [F87 Competition Commission] on a reference under section 24 above shall be made to the Director.

(5) Subject to subsection (6) below, the Director shall—

(a) on receiving [F90 a report on a reference under section 24(1) above, send a copy of it to the licence holder] and to the Secretary of State; and

(b) not less than 14 days after that copy is received by the Secretary of State, send another copy to the Council and publish that other copy in such manner as he considers appropriate for bringing the report to the attention of persons likely to be affected by it.

[F91 (5A) Subject to subsection (6) below, the Director shall—

(a) on receiving a report on a reference under section 24(1A) above, send a copy of it to the Secretary of State; and

(b) not less than 14 days after that copy is received by the Secretary of State—

(i) send another copy to the Council and to each relevant licence holder; and

(ii) not less than 24 hours after complying with sub-paragraph (i) above, publish the copy sent to the Council in such manner as he considers appropriate for bringing the report to the attention of persons likely to be affected by it.]

(6) If it appears to the Secretary of State that the publication of any matter in such a report would be against the public interest or the commercial interests of any person, he may, before the end of the period of 14 days mentioned in subsection (5) [F92 or (5A)]above, direct the Director to exclude that matter from [F93 the copy of the report, or (as the case may be) each copy of the report, to be sent and published as mentioned in paragraph (b) of that subsection].

Textual Amendments

F87 Words in s. 25(1)-(4) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F88 Words in s. 25(1)(c) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(1); S.I. 1996/218, art. 2

F89 S. 25(2) repealed (1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. IV para. 10(3), Sch. 14 Pt. I (with s. 73); S.I. 2000/344, art. 2 Sch.

F90 Words in s. 25(5)(a) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(3); S.I. 1996/218, art. 2

F91 S. 25(5A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(4); S.I. 1996/218, art. 2

F92 Words in s. 25(6) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(5)(a); S.I. 1996/218, art. 2

F93 Words in s. 25(6) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(5)(b); S.I. 1996/218, art. 2

Marginal Citations

M12 1973 c. 41.

26 Modification following report. E+W+S

(1) Where a report of the [F94 Competition Commission]a reference under section 24 above—

(a) includes conclusions to the effect that any of the matters specified in the reference operate, or may be expected to operate, against the public interest;

(b) specifies effects adverse to the public interest which those matters have or may be expected to have;

(c) includes conclusions to the effect that those effects could be remedied or prevented by modifications of [F95 the relevant conditions]; and

(d) specifies modifications by which those effects could be remedied or prevented,

the Director shall, subject to the following provisions of this section, make such modifications of [F95 the relevant conditions] as appear to him requisite for the purpose of remedying or preventing the adverse effects specified in the report.

[F96 (1A) Where at any time the Director modifies under subsection (1) above the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, he—

(a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences under that section or, as the case may be, that subsection granted after that time; and

(b) may make such incidental or consequential modifications as he considers necessary or expedient of any conditions of licences under that provision granted before that time;

and the above reference to subsection (1) above is a reference to that subsection as it applies in relation to a report on a reference under section 24(1A) above.]

(2) Before making modifications under this section, the Director shall have regard to the modifications specified in the report.

(3) Before making modifications under this section, the Director shall give notice—

(a) stating that he proposes to make the modifications and setting out their effect;

(b) stating the reasons why he proposes to make the modifications; and

(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(4) A notice under subsection (3) above shall be given—

(a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the making of the modifications; and

(b) by sending a copy of the notice to the [F97 holder of the licence or, as the case may be, the relevant licence holders, to the Health and Safety Executive] and to the Council.

[F98 (5) Where at any time the Director modifies standard conditions under subsection (1A)(a) above for the purposes of their incorporation in licences under section 7 or 7A(1) or (2) above granted after that time, he shall publish the modifications in such manner as he considers appropriate.]

Textual Amendments

F94 Words in S. 26(1) substituted (1.4.1999) by S.I. 1999/506 art. 20(b)

F95 Words in s. 26(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 24(1); S.I. 1996/218, art. 2

F96 S. 26(1A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 24(2); S.I. 1996/218, art. 2

F97 Words in s. 26(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 24(3); S.I. 1996/218, art. 2

F98 S. 26(5) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 24(4); S.I. 1996/218, art. 2

Valid from 01/10/2001

[F99 26A Competition Commission’s power to veto modifications following report. E+W+S

(1) The Competition Commission (in this section referred to as “the Commission”) may, within the period of four weeks after the date on which it is given a notice under section 26(4A), direct the Authority—

(a) not to make the modifications set out in that notice; or

(b) not to make such of the modifications as may be specified in the direction;

and the Authority shall comply with any such direction.

(2) The Secretary of State may, within the period of four weeks after the date on which the Commission is given a notice under section 26(4A) and on the application of the Commission, direct that the period for giving a direction under subsection (1) (and, accordingly, the period mentioned in section 26(4C)) shall be extended by 14 days.

(3) The power to give a direction under subsection (1) may only be exercised in respect of such of the modifications set out in the notice under section 26(4A)(a) as appear to the Commission not to be the modifications which are requisite for the purpose of remedying or preventing all or any of the adverse effects specified in the report as effects which could be remedied or prevented by modifications.

(4) If the Commission gives a direction under subsection (1), the Commission—

(a) shall give notice setting out the modifications proposed by the Authority, the terms of the direction and the reasons for giving it; and

(b) shall itself make such modifications of the relevant conditions as appear to it to be requisite for the purpose of remedying or preventing—

(i) if the direction was given under subsection (1)(a), the adverse effects specified in the report as effects which could be remedied or prevented by modifications;

(ii) if the direction was given under subsection (1)(b), such of those adverse effects as are not remedied or prevented by the modifications made by the Authority under section 26(4C)(b).

(5) In exercising its function under subsection (4)(b) the Commission shall have regard to the matters to which the Authority is required to have regard when determining the conditions of a licence.

(6) Before making modifications under subsection (4)(b) the Commission shall give notice—

(a) stating that it proposes to make the modifications and setting them out;

(b) stating the reason why it proposes to make them;

(c) specifying the period (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(7) A notice under subsection (4)(a) or (6) shall be given—

(a) by publishing the notice in such manner as the Commission considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the making of the modifications; and

(b) by serving a copy on the Authority and the holder of the licence in question or, as the case may be, the relevant licence holders.

(8) After making modifications under this section the Commission shall publish a notice stating that the modifications have been made and setting them out, with the reasons for making them.

(9) Where, in consequence of a reference under section 24(1A), the Commission modifies under subsection (4)(b) the standard conditions of licences of any type (that is to say, licences under section 7 or section 7A(1) or 7A(2)) the Authority may make such incidental and consequential modifications as it considers necessary or expedient of any conditions of licences of that type granted before that time.

(10) Where the Commission modifies the standard conditions of licences of any type as mentioned in subsection (9) the Authority—

(a) shall make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that type granted after that time; and

(b) shall publish the modifications made for those purposes in such manner as it considers appropriate.

(11) The modification under this section of part of a standard condition of a particular licence in consequence of a reference under section 24(1) shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.

(12) The provisions mentioned in subsection (13) are to apply in relation to the exercise by the Commission of its functions under this section as if—

(a) in section 82(1) and (2) of the M13 Fair Trading Act 1973 references to a report of the Commission under that Act were references to a notice under subsection (4)(a), (6) or (8) of this section;

(b) in section 85 of that Act references to an investigation on a reference made to the Commission were references to an investigation by the Commission for the purposes of the exercise of its functions under this section.

(13) The provisions are—

(a) section 82(1) and (2) of the M14 Fair Trading Act 1973 (general provisions as to reports under that Act);

(b) section 85 of that Act (attendance of witnesses and production of documents);

(c) section 24 of the M15 Competition Act 1980 (modification of provisions about the Competition Commission’s general functions); and

(d) Part II of Schedule 7 to the M16 Competition Act 1998 (the Competition Commission’s general functions).

(14) This section does not apply to the modification of a licence following a report of the Commission made before the commencement of section 83(4) of the Utilities Act 2000.]

Textual Amendments

F99 S. 26A inserted (1.10.2001) by 2000 c. 27, ss. 83(4), 104(1)(2) (with s. 104(6)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Marginal Citations

M13 1973 c. 41.

M14 1973 c. 41.

M15 1980 c. 21.

M16 1998 c.41.

[F100 27 Modification by order under other enactments. E+W+S

(1) Where in the circumstances mentioned in subsection (3) or (4) below the Secretary of State by order exercises any of the powers specified in Parts I and II of Schedule 8 to the M17 Fair Trading Act 1973 F101 . . ., the order may also provide for the modification of—

(a) the conditions of a particular licence; or

(b) the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section,

to such extent as may appear to him to be requisite or expedient for the purpose of giving effect to or of taking account of any provision made by the order.

(2) Where at any time the Secretary of State modifies under subsection (1)(b) above the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, he—

(a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences under that section or, as the case may be, that subsection granted after that time; and

(b) may, after consultation with the Director, make such incidental or consequential modifications as he considers necessary or expedient of any conditions of licences under that provision granted before that time.

(3) Subsection (1) above shall have effect where—

(a) the circumstances are as mentioned in section 56(1) of the said Act of 1973 (order on report on monopoly reference), F102 . . .); and

(b) the monopoly situation exists in relation to, or (as the case may be) the anti-competitive practice relates to—

(i) the carrying on of activities authorised or required by a licence; or

(ii) the storage of gas on terms which have been determined by the holder of a licence under section 7 above, or could have been determined by the holder if he had thought fit or had been required to determine them by or under a condition of the licence.

(4) Subsection (1) above shall also have effect where—

(a) the circumstances are as mentioned in section 73(1) of the said Act of 1973 (order on report on merger reference); and

(b) at least one of the two or more enterprises—

(i) which ceased to be distinct enterprises; or

(ii) in the application of that provision as it has effect by virtue of section 75(4)(e) of that Act, which would cease to be distinct enterprises,

was or, as the case may be, is engaged in the carrying on of activities authorised or required by a licence.

(5) Where at any time the Secretary of State modifies standard conditions under subsection (2)(a) above for the purposes of their incorporation in licences granted after that time, he shall publish those modifications in such manner as he considers appropriate.

(6) In this section expressions which are also used in the said Act of 1973 F103 . . . have the same meanings as in that Act.]

Textual Amendments

F100 S. 27 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 25; S.I. 1996/218, art. 2

F101 Words in s. 27(1) repealed (1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. IV para. 10(4)(a), Sch. 14 Pt. I (with s. 73); S.I. 2000/344, art. 2 Sch.

F102 Words in s. 27(3)(a) repealed (1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. IV para. 10(4)(b), Sch. 14 Pt. I (with s. 73); S.I. 2000/344, art. 2 Sch.

F103 Words in s. 27(6) repealed (1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. IV para. 10(4)(c), Sch. 14 Pt. I (with s. 73); S.I. 2000/344, art. 2 Sch.

Marginal Citations

M17 1973 c.41.

[F104 Determination of disputes] E+W+S

Textual Amendments

F104 S. 27A and the preceding cross-heading inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 26; S.I. 1996/218, art. 2

[F105 27A Determination of certain disputes. E+W+S

(1) Subject to subsection (2) below, any dispute arising under section 9(1)(b) or (2), 10 or 11 above, regulations under section 10 above, or any provision of paragraphs 2, 3, 15 or 16 of Schedule 2B to this Act, between a public gas transporter or gas supplier and a person who is, or wishes to become, a domestic customer—

(a) may be referred to the Director by either party, or with the agreement of either party, by the Council; and

(b) on such a reference, shall be determined by order made either by the Director, or if he thinks fit by an arbitrator (or in Scotland arbiter) appointed by him.

(2) No dispute which—

(a) arises under section 9(1)(b) above and relates to the connection of any premises to a pipe-line system operated by a public gas transporter; or

(b) arises under section 10 above, or regulations under that section, and relates to the connection of any premises to a main of such a transporter,

may be referred to the Director after the end of the period of 12 months beginning with the time when the connection is made.

(3) Any person making an order under subsection (1) above shall include in the order his reasons for reaching his decision with respect to the dispute.

(4) The practice and procedure to be followed in connection with any such determination shall be such as the Director may consider appropriate.

(5) Where any dispute between a public gas transporter and a person requiring a connection to a main of the transporter falls to be determined under this section, the Director may give directions as to the circumstances in which, and the terms on which, the transporter is to connect or (as the case may be) to maintain the connection pending the determination of the dispute.

(6) Where any dispute between a gas supplier and a person requiring a supply of gas falls to be determined under this section, the Director may give directions as to the circumstances in which, and the terms on which, the supplier is to give or (as the case may be) to continue to give the supply pending the determination of the dispute.

(7) Where any dispute arising under section 11(1) above falls to be determined under this section, the Director may give directions as to the security (if any) to be given pending the determination of the dispute.

(8) Any direction under subsection (5), (6) or (7) above may be expressed to apply either in relation to a particular case or in relation to a class of case.

(9) An order under this section—

(a) may include such incidental, supplemental and consequential provision (including provision requiring either party to pay a sum in respect of the costs or expenses incurred by the person making the order) as that person considers appropriate; and

(b) shall be final and—

(i) in England and Wales, enforceable, in so far as it includes such provision as to costs or expenses, as if it were a judgment of a county court; and

(ii) in Scotland, enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.

(10) In including in an order under this section any such provision as to costs or expenses, the person making the order shall have regard to the conduct and means of the parties and any other relevant circumstances.]

Textual Amendments

F105 S. 27A inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 26; S.I. 1996/218, art. 2

Public gas suppliers: enforcement E+W+S

28 Orders for securing compliance with certain provisions. E+W+S

(1) Subject to subsections (2) and (5) and section 29 below, where the Director is satisfied that a [F106 licence holder] is contravening, or [F107 is likely] to contravene, any relevant condition or requirement, the Director shall by a final order make such provision as is requisite for the purpose of securing compliance with that condition or requirement.

(2) Subject to subsection (5) below, where it appears to the Director—

(a) that a [F106 licence holder] is contravening, or [F107 is likely] to contravene, any relevant condition or requirement; and

(b) that it is requisite that a provisional order be made,

the Director shall (instead of taking steps towards the making of a final order) by a provisional order make such provision as appears to him requisite for the purpose of securing compliance with that condition or requirement.

(3) In determining for the purposes of subsection (2)(b) above whether it is requisite that a provisional order be made, the Director shall have regard, in particular—

(a) to the extent to which any person is likely to sustain loss or damage in consequence anything which, in contravention of the relevant condition or requirement, is likely to be done, or omitted to be done, before a final order may be made; and

(b) to the fact that the effect of the provisions of this section and section 30 below is to exclude the availability of any remedy (apart from under those provisions or for negligence) in respect of any contravention of a relevant condition or requirement.

(4) Subject to subsection (5) and section 29 below, the Director shall confirm a provisional order, with or without modifications, if—

(a) he is satisfied that the [F106 licence holder] is contravening, or [F107 is likely] to contravene, any relevant condition or requirement; and

(b) the provision made by the order (with any modifications) is requisite for the purpose of securing compliance with that condition or requirement.

(5) The Director shall not make a final order or make or confirm a provisional order if he is satisfied—

(a) that the duties imposed on him by [F108 section [F109 4AA, 4AB or 4A]]preclude the making or, as the case may be, the confirmation of the order[F110 (aa) that the [F111 licence holder] has agreed to take and is taking all such steps as it appears to the Director for the time being to be appropriate for the [F112 licence holder] to take for the purpose of securing or facilitating compliance with the condition or requirement in question; F113 . . .]

(b) that the contraventions were or the apprehended contraventions are of a trivial nature.

[F114 (c) that the most appropriate way of proceeding is under the Competition Act 1998.]

(6) Where the Director is satisfied as mentioned in subsection (5) above, he shall—

(a) give notice that he is so satisfied to the [F115 licence holder]; and

(b) publish a copy of the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(7) A final or provisional order—

(a) shall require the [F115 licence holder] (according to the circumstances of the case) to do, or not to do, such things as are specified in the order or are of a description so specified;

(b) shall take effect at such time, being the earliest practicable time, as is determined by or under the order; and

(c) may be revoked at any time by the Director.

[F116 (7A) Without prejudice to the generality of the power conferred by subsection (1) above, the provision that may be made in a final order includes, in particular, the imposition by the Director on the licence holder to whom the order relates of a requirement to pay to the Director a monetary penalty of such amount as may be appropriate, in all the circumstances of the case, in respect of the contravention in question.]

(8) In this section and sections 29 and 30 below—

• “final order” means an order under this section other than a provisional order;

• “provisional order” means an order under this section which, if not previously confirmed under subsection (4) above, will cease to have effect at the end of such period (not exceeding three months) as is determined by or under the order;

• “relevant condition”, in relation to a [F117 licence holder], means any condition of his [F117 licence holder];

• [F118 “relevant requirement”, in relation to a licence holder, means any requirement imposed on him by or under section 9(1) or (2), 10(2), (3) or (14), 11(2), 12(1) or (6), 18(11), 22A(1) or 27A(5) or (6) above or section 33B, 33BB, 33D or 33E below or any provision of paragraphs 3, 6, 15, 16, 20(5) and 28(2) of Schedule 2B to this Act [F119 or section 27(4)(b) of the Utilities Act 2000 (order to comply with a direction under section 24 of that Act)].

[F120 (9) Any sums received by the Director by way of monetary penalty under this section shall be paid into the Consolidated Fund.]]

Textual Amendments

F106 Words in s. 28(1)(2)(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(1); S.I. 1996/218, art. 2

F107 Words in s. 28(1)(2)(4)(a) substituted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 48(2); Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F108 Words in s. 28(5) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(2)(a); S.I. 1996/218, art. 2

F109 Words in s. 28(5)(a) substituted (20.12.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 11; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F110 S. 28(5)(aa) inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 48(3); Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F111 Words in s. 28(5) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(2)(b); S.I. 1996/218, art. 2

F112 Words in s. 28(5) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(2)(c); S.I. 1996/218, art. 2

F113 Word in s. 28(5) repealed (1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. IV para. 10(5), Sch. 14 Pt. I (with s. 73); S.I. 2000/344, art. 2 Sch.

F114 S. 28(5)(c) inserted (1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. IV para. 10(5) (with s. 73); S.I. 2000/344, art. 2 Sch.

F115 Words in s. 28(6)(7) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(3); S.I. 1996/218, art. 2

F116 S. 28(7A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(4); S.I. 1996/218, art. 2

F117 Words in s. 28(8) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(5)(a); S.I. 1996/218, art. 2

F118 Words in s. 28(8) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(5)(b); S.I. 1996/218, art. 2

F119 S. 28(8): words in definition of

“relevant requirement”

inserted (7.11.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 12(f); S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

F120 S. 28(9) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(6); S.I. 1996/218, art. 2

29 Procedural requirements. E+W+S

(1) Before making a final order or confirming a provisional order, the Director shall give notice—

(a) stating that he proposes to make or confirm the order and setting out its effect;

(b) stating the relevant condition or requirement, the acts or omissions which, in his opinion, constitute or would constitute contraventions of it and the other facts which, in his opinion, justify the making or confirmation of the order; and

(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections to the proposed order or confirmation of the order may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(2) A notice under subsection (1) above shall be given—

(a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and

(b) by sending a copy of the notice, and a copy of the proposed order or of the order proposed to be confirmed, to the [F121 licence holder].

(3) The Director shall not make a final order, or confirm a provisional order, with modifications except with the consent of the [F121 licence holder] or after complying with the requirements of subsection (4) below.

(4) The said requirements are that the Director shall—

(a) give to the [F121 licence holder] such notice as appears to him requisite of his proposal to make or confirm the order with modifications;

(b) specify the time (not being less than 28 days from the date of the service of the notice) within which representations or objections to the proposed modifications may be made; and

(c) consider any representations or objections which are duly made and not withdrawn.

(5) Before revoking a final order or a provisional order which has been confirmed, the Director shall give notice—

(a) stating that he proposes to revoke the order and setting out its effect; and

(b) specifying the time (not being less than 28 days) from the date of publication of the notice within which representations or objections to the proposed revocation may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(6) A notice under subsection (5) above shall be given—

(a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and

(b) by sending a copy of the notice to the [F121 licence holder].

(7) As soon as practicable after a final order is made or a provisional order is made or confirmed, the Director shall—

(a) serve a copy of the order on the [F121 licence holder]; and

(b) publish such a copy in such manner as he considers appropriate for the purpose of bringing the order to the attention of persons likely to be affected by it.

Textual Amendments

F121 Words in s. 29(2)-(4)(6)(7) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 28; S.I. 1996/218, art. 2

30 Validity and effect of orders. E+W+S

(1) If the [F122 licence holder] is aggrieved by a final or provisional order and desires to question its validity on the ground that the making or confirmation of it was not within the powers of section 28 above or that any of the requirements of section 29 above have not been complied with in relation to it, he may within 42 days from the date of service on him of a copy of the order make an application to the court under this section.

[F123 (2) On any such application the court, if satisfied that the making or confirmation of the order was not within those powers or that the interests of the licence holder have been substantially prejudiced by a failure to comply with those requirements—

(a) may quash the order or any provision of the order; or

(b) if and to the extent that the application related to so much of an order as imposes a monetary penalty, may substitute a monetary penalty of such lesser amount as the court considers appropriate in all the circumstances of the case.]

(3) Except as provided by this section, the validity of a final or provisional order shall not be questioned by any legal proceedings whatever.

(4) No criminal proceedings shall, by virtue of the making of a final order or the making or confirmation of a provisional order, lie against any person on the ground that he has committed, or aided, abetted, counselled or procured the commission of, or conspired or attempted to commit, or incited others to commit, any contravention of the order.

(5) The obligation to comply with a final or provisional order is a duty owed to any person who may be affected by a contravention of it.

(6) Where a duty is owed by virtue of subsection (5) above to any person any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

(7) In any proceedings brought against any person in pursuance of subsection (6) above, it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the order.

(8) Without prejudice to any right which any person may have by virtue of subsection (6) above to bring civil proceedings in respect of any contravention or apprehended contravention of a final or provisional order, compliance with any such order shall be enforceable by civil proceedings by the Director for an injunction or interdict or for any other appropriate relief.

(9) In this section “the court” means—

(a) in relation to England and Wales, the High Court;

(b) in relation to Scotland, the Court of Session.

Textual Amendments

F122 Words in s. 30(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 29(1); S.I. 1996/218, art. 2

F123 S. 30(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 29(2); S.I. 1996/218, art. 2

[F124 30A Penalties. E+W+S

(1) Where the Authority is satisfied that a licence holder—

(a) has contravened or is contravening any relevant condition or requirement; or

(b) has failed or is failing to achieve any standard of performance prescribed under section 33A or 33AA,

the Authority may, subject to section 30C, impose on the licence holder a penalty of such amount as is reasonable in all the circumstances of the case.

(2) The Authority shall not impose a penalty on a licence holder under subsection (1) where it is satisfied that the most appropriate way of proceeding is under the M18 Competition Act 1998.

(3) Before imposing a penalty on a licence holder under subsection (1) the Authority shall give notice—

(a) stating that it proposes to impose a penalty and the amount of the penalty proposed to be imposed;

(b) setting out the relevant condition or requirement or the standard of performance in question;

(c) specifying the acts or omissions which, in the opinion of the Authority, constitute the contravention or failure in question and the other facts which, in the opinion of the Authority, justify the imposition of a penalty and the amount of the penalty proposed; and

(d) specifying the period (not being less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed penalty may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(4) Before varying any proposal stated in a notice under subsection (3)(a) the Authority shall give notice—

(a) setting out the proposed variation and the reasons for it; and

(b) specifying the period (not being less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed variation may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(5) As soon as practicable after imposing a penalty, the Authority shall give notice—

(a) stating that it has imposed a penalty on the licence holder and its amount;

(b) setting out the relevant condition or requirement or the standard of performance in question;

(c) specifying the acts or omissions which, in the opinion of the Authority, constitute the contravention or failure in question and the other facts which, in the opinion of the Authority, justify the imposition of the penalty and its amount; and

(d) specifying a date, no earlier than the end of the period of 42 days from the date of service of the notice on the licence holder, by which the penalty is required to be paid.

(6) The licence holder may, within 21 days of the date of service on him of a notice under subsection (5), make an application to the Authority for it to specify different dates by which different portions of the penalty are to be paid.

(7) Any notice required to be given under this section shall be given—

(a) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them;

(b) by serving a copy of the notice on the licence holder; and

(c) by serving a copy of the notice on the Council.

(8) No penalty imposed by the Authority under this section may exceed 10 per cent. of the turnover of the licence holder (determined in accordance with provisions specified in an order made by the Secretary of State).

(9) An order under subsection (8) shall not be made unless a draft of the instrument containing it has been laid before and approved by a resolution of each House of Parliament.

(10) Any sums received by the Authority by way of penalty under this section shall be paid into the Consolidated Fund.

(11) The power of the Authority under subsection (1) is not exercisable in respect of any contravention or failure before the commencement of section 95 of the Utilities Act 2000.]

Textual Amendments

F124 SS. 30A-30F inserted (20.12.2000 for specified purposes otherwise 1.10.2001) by 2000 c. 27, s. 95(1); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Modifications etc. (not altering text)

C28 S. 30A(1)(b) amended (temp. from 19.12.2000) by SI. 2000/3343, art. 9(2) (subject to transitional provisions in arts. 3-15)

Marginal Citations

M18 1998 c. 41.

[F125 30B Statement of policy with respect to penalties. E+W+S

(1) The Authority shall prepare and publish a statement of policy with respect to the imposition of penalties and the determination of their amount.

(2) In deciding whether to impose a penalty, and in determining the amount of any penalty, in respect of a contravention or failure the Authority shall have regard to its statement of policy most recently published at the time when the contravention or failure occurred.

(3) The Authority may revise its statement of policy and where it does so shall publish the revised statement.

(4) Publication under this section shall be in such manner as the Authority considers appropriate for the purpose of bringing the matters contained in the statement of policy to the attention of persons likely to be affected by them.

(5) The Authority shall undertake such consultation as it considers appropriate when preparing or revising its statement of policy.]

Textual Amendments

F125 Ss. 30A-30F inserted (20.12.2000 for specified purposes otherwise 1.10.2001) by 2000 c. 27, s. 95(1); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F126 30C Time limits on the imposition of penalties. E+W+S

(1) Where no final or provisional order has been made in relation to a contravention or failure, the Authority may not impose a penalty in respect of the contravention or failure later than the end of the period of 12 months from the time of the contravention or failure, unless before the end of that period—

(a) the notice under section 30A(3) relating to the penalty is served on the licence holder under section 30A(7), or

(b) a notice relating to the contravention or failure is served on the licence holder under section 38(1).

(2) Where a final or provisional order has been made in relation to a contravention or failure, the Authority may not impose a penalty in respect of the contravention or failure unless the notice relating to the penalty under section 30A(3) was served on the licence holder under section 30A(7)—

(a) within three months from the confirmation of the provisional order or the making of the final order, or

(b) where the provisional order is not confirmed, within six months from the making of the provisional order.]

Textual Amendments

F126 Ss. 30A-30F inserted (20.12.2000 for specified purposes otherwise 1.10.2001) by 2000 c. 27, s. 95(1); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F127 30D Interest and payment of instalments. E+W+S

(1) If the whole or any part of a penalty is not paid by the date by which it is required to be paid, the unpaid balance from time to time shall carry interest at the rate for the time being specified in section 17 of the M19 Judgments Act 1838.

(2) If an application is made under subsection (6) of section 30A in relation to a penalty, the penalty is not required to be paid until the application has been determined.

(3) If the Authority grants an application under that subsection in relation to a penalty but any portion of the penalty is not paid by the date specified in relation to it by the Authority under that subsection, the Authority may where it considers it appropriate require so much of the penalty as has not already been paid to be paid immediately.]

Textual Amendments

F127 Ss. 30A-30F inserted (20.12.2000 for specified purposes otherwise 1.10.2001) by 2000 c. 27, s. 95(1); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Marginal Citations

M19 1838 c. 110.

[F128 30E Appeals. E+W+S

(1) If the licence holder on whom a penalty is imposed is aggrieved by—

(a) the imposition of the penalty;

(b) the amount of the penalty; or

(c) the date by which the penalty is required to be paid, or the different dates by which different portions of the penalty are required to be paid,

the licence holder may make an application to the court under this section.

(2) An application under subsection (1) must be made—

(a) within 42 days from the date of service on the licence holder of a notice under section 30A(5), or

(b) where the application relates to a decision of the Authority on an application by the licence holder under section 30A(6), within 42 days from the date the licence holder is notified of the decision.

(3) On any such application, where the court considers it appropriate to do so in all the circumstances of the case and is satisfied of one or more of the grounds falling within subsection (4), the court—

(a) may quash the penalty;

(b) may substitute a penalty of such lesser amount as the court considers appropriate in all the circumstances of the case; or

(c) in the case of an application under subsection (1)(c), may substitute for the date or dates imposed by the Authority an alternative date or dates.

(4) The grounds falling within this subsection are—

(a) that the imposition of the penalty was not within the power of the Authority under section 30A;

(b) that any of the requirements of subsections (3) to (5) or (7) of section 30A have not been complied with in relation to the imposition of the penalty and the interests of the licence holder have been substantially prejudiced by the non-compliance; or

(c) that it was unreasonable of the Authority to require the penalty imposed, or any portion of it, to be paid by the date or dates by which it was required to be paid.

(5) If an application is made under this section in relation to a penalty, the penalty is not required to be paid until the application has been determined.

(6) Where the court substitutes a penalty of a lesser amount it may require the payment of interest on the substituted penalty at such rate, and from such date, as it considers just and equitable.

(7) Where the court specifies as a date by which the penalty, or a portion of the penalty, is to be paid a date before the determination of the application under this section it may require the payment of interest on the penalty, or portion, from that date at such rate as it considers just and equitable.

(8) Except as provided by this section, the validity of a penalty shall not be questioned by any legal proceedings whatever.

(9) In this section “the court” means—

(a) in relation to England and Wales, the High Court; and

(b) in relation to Scotland, the Court of Session.]

Textual Amendments

F128 Ss. 30A-30F inserted (20.12.2000 for specified purposes otherwise 1.10.2001) by 2000 c. 27, s. 95(1); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F129 30F Recovery of penalties. E+W+S

Where a penalty imposed under section 30A(1), or any portion of it, has not been paid by the date on which it is required to be paid and—

(a) no application relating to the penalty has been made under section 30E during the period within which such an application can be made, or

(b) an application has been made under that section and determined,

the Authority may recover from the licence holder, as a civil debt due to it, any of the penalty and any interest which has not been paid.]

Textual Amendments

F129 Ss. 30A-30F inserted (20.12.2000 for specified purposes otherwise 1.10.2001) by 2000 c. 27, s. 95(1); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Investigation of complaints etc. E+W+S

F130 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F130 S. 31 repealed (7.11.2000) by 2000 c. 27, ss. 22(3), 108, Sch. 8 (with Sch. 7 para. 31); S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

[F131 32 Consumer complaints. E+W+S

(1) This section applies to a complaint which any customer or potential customer of, or user of gas supplied by, an authorised supplier (“the complainant”) has in his capacity as such against—

(a) the supplier, in respect of any matter connected with the services provided by him in the course of carrying on regulated activities; or

(b) any other person authorised by a licence or exemption, in respect of any matter affecting those services which is connected with the carrying on by that other person of regulated activities.

(2) Where a complaint to which this section applies (other than one appearing to it to be frivolous or vexatious) is referred to the Council by or on behalf of the complainant, the Council shall (subject to subsection (5)) investigate the complaint for the purpose of determining whether it is appropriate to take any action under subsection (6).

(3) Where it appears to the Council that the complaint relates to a matter in respect of which any enforcement function is or may be exercisable the Council shall (unless it considers that the Authority already has notice of that matter) inform the Authority of the matter.

(4) Where it appears to the Council that the complaint relates to a matter which constitutes a dispute of a kind which can be referred to the Authority under any provision of this Act, the Council shall inform the complainant that he may have the right to refer the dispute to the Authority.

(5) The Council is not required by this section—

(a) to investigate a complaint, until the complainant has taken such steps as appear to the Council to be reasonable for him to take for the purpose of giving the person against whom the complaint is made a reasonable opportunity to deal with the complaint;

(b) to investigate any matter to which subsection (3) applies, until the Authority has had a reasonable opportunity to exercise any enforcement function in respect of that matter; and

(c) to investigate any matter constituting a dispute which has been referred to the Authority under any provision of this Act.

(6) Where it appears to the Council to be appropriate to do so with a view to assisting in reaching a satisfactory resolution of a complaint referred to it under this section, the Council shall make representations on behalf of the complainant to the person against whom the complaint is made about anything to which the complaint relates.

(7) After investigating a complaint the Council may make a report to the Authority; and such a report may include information about—

(a) any representations made by the Council under subsection (6); and

(b) the response of the person against whom the complaint is made to the complaint or any such representations.

(8) No report under subsection (7), or information about a complaint referred to the Council under this section from which the complainant may be identified, shall be published or disclosed by the Council or the Authority in the exercise of any power under the Utilities Act 2000 or this Act, without the consent of the complainant.

(9) Where a representation made to the Authority about any matter (other than one appearing to it to be frivolous or vexatious) appears to the Authority—

(a) to be about a matter which is or amounts to a complaint to which this section applies; and

(b) to have been made by or on behalf of the complainant,

the Authority shall refer the complaint to the Council.

(10) In this section—

• “enforcement function” means a function under section 28 or 30A; and

• “regulated activities” means activities which are authorised or regulated by a licence or exemption.]

Textual Amendments

F131 S. 32 substituted (7.11.2000) by 2000 c. 27, s. 22(1); S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

F132 32A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

Textual Amendments

F132 S. 32A repealed (7.11.2000) by 2000 c. 27, ss. 22(3), 108, Sch. 8 (with Sch. 7 para. 31); S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

[F133 33 Power of Council to investigate other matters. E+W+S

(1) The Council may investigate any matter (not being a matter which it is its duty to investigate under this Part) which appears to it to be a matter relating to the interests of consumers in relation to gas conveyed through pipes.

(2) The power to undertake an investigation under this section includes, without prejudice to the generality of subsection (1), power to investigate any matter relating to or to anything connected with gas fittings (or their use) or the use of gas supplied by authorised suppliers.

(3) In subsection (2), “gas fittings” means gas fittings used or intended to be used by persons supplied with gas by authorised suppliers.

(4) Where the Council has investigated a matter under this section it may make a report on that matter to the Authority, the Secretary of State, the Director General of Fair Trading or any other public authority whose functions appear to the Council to be exercisable in relation to that matter.

(5) Subject to subsection (6), the Council may—

(a) send a report on any matter investigated under this section to any person who appears to the Council to have an interest in that matter; and

(b) publish any such report in such manner as the Council thinks appropriate.

(6) Information which relates to the affairs of any particular individual or body of persons (corporate or unincorporate)—

(a) shall not be included in a report which is to be sent to any person under subsection (5)(a), unless one or more of paragraphs (a) to (c) of subsection (7) applies; and

(b) shall be excluded from any such report which is to be published under subsection (5)(b), unless one or more or paragraphs (a) to (c) of subsection (8) applies.

(7) Information relating to a particular individual or body may be included in a report to be sent under subsection (5)(a) if—

(a) that individual or body has consented to the disclosure;

(b) it is information that is available to the public from some other source; or

(c) it is not information the disclosure of which would or might, in the opinion of the Council, seriously and prejudicially affect the interests of that individual or body.

(8) Information relating to a particular individual or body may be included in a report to be published under subsection (5)(b) if—

(a) that individual or body has consented to the publication;

(b) it is information that is available to the public from some other source; or

(c) it is not information the publication of which would or might, in the opinion of the Council, seriously and prejudicially affect the interests of that individual or body.

(9) Before deciding to include in such a report any information relating to a particular individual or body in pursuance of subsection (7)(c) or (8)(c), the Council shall—

(a) consult that individual or body; and

(b) have regard to any opinion expressed by the Authority as to the application of subsection (7)(c) or (8)(c) to the information or as to the desirability or otherwise of its inclusion in the report;

and paragraph (b) applies whether the opinion is given in relation to the information itself or to information of a description which applies to that information.]

Textual Amendments

F133 S. 33 substituted (7.11.2000) by 2000 c. 27, s. 23(1) (with Sch. 7 para. 31); S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

[F134 Standards of performance] E+W+S

Textual Amendments

F134 Cross heading, ss. 33A and 33B inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 11; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt.I.

[F135 33A Standards of performance in individual cases. E+W+S

(1) The Director may make regulations prescribing such standards of performance in connection with the provision of gas supply services by [F136 gas suppliers to domestic customers]] as, in his opinion, ought to be achieved in individual cases.

(2) Regulations under subsection (1) above may only be made—

(a) with the consent of the Secretary of State;

(b) after consulting—

(i) [F137 gas suppliers]; and

(ii) persons or bodies appearing to the Director to be representative of persons likely to be affected by the regulations; and

(c) after arranging for such research as the Director considers appropriate with a view to discovering the views of a representative sample of persons likely to be so affected and considering the results.

(3) Regulations under this section may—

(a) prescribe circumstances in which [F138 gas suppliers] are to inform [F139 domestic customers] of their rights under this section;

(b) prescribe such standards of performance in relation to any duty arising under paragraph (a) above as, in the Director’s opinion, ought to be achieved in all cases;

(c) prescribe circumstances in which [F138 gas suppliers] are to be exempted from any requirements of the regulations or this section; and

(d) [F140 if the Director is of the opinion that the differences are such that no gas supplier would be unduly disadvantaged in competing with other gas suppliers,] make different provision with respect to different [F138 gas suppliers].

(4) If a [F141 gas supplier] fails to meet a prescribed standard, he shall make to any [F142 domestic customer] who is affected by the failure such compensation as may be determined by or under the regulations.

(5) The making of compensation under this section in respect of any failure to meet a prescribed standard shall not prejudice any other remedy which may be available in respect of the act or omission which constituted that failure.

(6) Any dispute arising under this section or regulations made under this section—

(a) may be referred to the Director by either party or, with the agreement of either party, by the Council; and

(b) on such a reference, shall be determined by order made—

(i) by the Director; or

(ii) by such other person as may be prescribed.

(7) Any person making an order under subsection (6) above shall include in the order his reasons for reaching his decision with respect to the dispute.

(8) The practice and procedure to be followed in connection with any such determination shall be such as may be prescribed.

(9) An order under subsection (6) above shall be final and shall be enforceable—

(a) in England and Wales, as if it were a judgment of a county court; and

(b) in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.

F143 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F143 (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F135 Cross heading, ss. 33A and 33B inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 11; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F136 Words in s. 33A(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 34(1); S.I. 1996/218, art. 2

F137 Words in s. 33A(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 34(2); S.I. 1996/218, art. 2

F138 Words in s. 33A(3) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 34(3)(a); S.I. 1996/218, art. 2

F139 Words in s. 33A(3) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 34(3)(b); S.I. 1996/218, art. 2

F140 Words in s. 33A(3)(d) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 34(3)(c); S.I. 1996/218, art. 2

F141 Words in s. 33A(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 34(4)(a); S.I. 1996/218, art. 2

F142 Words in s. 33A(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 34(4)(b); S.I. 1996/218, art. 2

F143 S. 33A(10)(11) repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 34(5), Sch. 6; S.I. 1996/218, art. 2

Valid from 16/05/2001

[F144 33AA Standards of performance in individual cases: gas transporters. E+W+S

(1) The Authority may make regulations prescribing such standards of performance in connection with the activities of gas transporters, so far as affecting customers or potential customers of gas suppliers, as in the Authority’s opinion ought to be achieved in individual cases.

(2) Regulations under this section may only be made with the consent of the Secretary of State.

(3) If a gas transporter fails to meet a prescribed standard, he shall make to any customer or potential customer of a gas supplier who is affected by the failure and is of a prescribed description such compensation as may be determined by or under the regulations.

(4) The regulations may—

(a) prescribe circumstances in which gas transporters are to inform customers or potential customers of gas suppliers of their rights under this section;

(b) prescribe such standards of performance in relation to any duty arising under paragraph (a) as, in the Authority’s opinion, ought to be achieved in all cases;

(c) make provision as to the manner in which compensation under this section is to be made;

(d) prescribe circumstances in which gas transporters are to be exempted from any requirements of the regulations or this section; and

(e) if the Authority is of the opinion that the differences are such that no gas transporter would be unduly disadvantaged in competing with other gas transporters, make different provision with respect to different gas transporters.

(5) Provision made under subsection (4)(c) may—

(a) require or permit compensation to be made on behalf of gas transporters by gas suppliers to customers or potential customers;

(b) require gas suppliers to provide services to gas transporters in connection with the making of compensation under this section.

(6) The making of compensation under this section in respect of any failure to meet a prescribed standard shall not prejudice any other remedy which may be available in respect of the act or omission which constituted that failure.]

Textual Amendments

F144 S. 33AA inserted (16.5.2001 for certain purposes and otherwise 1.10.2001) by 2000 c. 27, s. 90(2); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Valid from 16/05/2001

[F145 33AB Standards of performance in individual cases: disputes. E+W+S

(1) Any dispute arising under section 33A or 33AA or regulations made under either of those sections—

(a) may be referred to the Authority by either party or, with the agreement of either party, by the Council; and

(b) on such a reference, shall be determined by order made by the Authority or, if it thinks fit, by such person (other than the Council) as may be prescribed.

(2) A person making an order under subsection (1) shall include in the order his reasons for reaching his decision with respect to the dispute.

(3) The practice and procedure to be followed in connection with any such determination shall be such as may be prescribed.

(4) An order under subsection (1) shall be final and shall be enforceable—

(a) in England and Wales, as if it were a judgment of a county court; and

(b) in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.

(5) In this section “prescribed” means prescribed by regulations made by the Authority with the consent of the Secretary of State.]

Textual Amendments

F145 S. 33AB inserted (16.5.2001 for certain purposes and otherwise 1.10.2001) by 2000 c. 27, s. 90(2); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[33B F146 Overall standards of performance. E+W+S

(1) The Director may from time to time—

(a) determine such standards of overall performance in connection with the provision of gas supply services by [F147 gas suppliers]] as, in his opinion, ought to be achieved by them; and

(b) arrange for the publication, in such form and in such manner as he considers appropriate, of the standards so determined.

(2) The Director may only make a determination under subsection (1)(a) above after—

(a) consulting [F148 gas suppliers] and persons or bodies appearing to the Director to be representative of persons likely to be affected; and

(b) arranging for such research as the Director considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and considering the results.

[F149 (3) Different standards may be determined for different gas suppliers if the Director is of the opinion that the differences are such that no gas supplier would be unduly disadvantaged in competing with other gas suppliers.

(3A) Standards may be determined either as respects the provision of gas supply services generally or as respects the provision of such services to customers of a particular class or description.]

(4) It shall be the duty of every [F150 gas supplier] to conduct his business in such a way as can reasonably be expected to lead to his achieving the standards set under this section.

Textual Amendments

F146 Cross heading, ss. 33A and 33B inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 11; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F147 Words in s. 33B(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 35(1); S.I. 1996/218, art. 2

F148 Words in s. 33B(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 35(2); S.I. 1996/218, art. 2

F149 S. 33B(3)(3A) substituted for s. 33B(3) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 35(3); S.I. 1996/218, art. 2

F150 Words in s. 33B(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 35(4); S.I. 1996/218, art. 2

Valid from 16/05/2001

[F151 33BA Overall standards of performance: gas transporters. E+W+S

(1) The Authority may from time to time—

(a) determine such standards of overall performance in connection with the activities of gas transporters as, in its opinion, ought to be achieved by them; and

(b) arrange for the publication, in such form and in such manner as he considers appropriate, of the standards so determined.

(2) Different standards may be determined for different gas transporters if the Authority is of the opinion that the differences are such that no gas transporter would be unduly disadvantaged in competing with other gas transporters.

(3) It shall be the duty of every gas transporter to conduct his business in such a way as can reasonably be expected to lead to his achieving the standards set under this section.]

Textual Amendments

F151 S. 33BA inserted (16.5.2001 for certain purposes and otherwise 1.10.2001) by 2000 c. 27, s. 91; S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Valid from 16/05/2001

[F152 33BAA Procedures for prescribing or determining standards of performance. E+W+S

(1) Before prescribing standards of performance in regulations under section 33A or 33AA, or determining standards of performance under section 33B or 33BA, the Authority shall—

(a) arrange for such research as the Authority considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and consider the results;

(b) publish a notice of its proposals in accordance with subsections (2) and (3) and consider any representations which are duly made in respect of those proposals; and

(c) consult the Council and other persons or bodies mentioned in subsection (4).

(2) The notice required by subsection (1)(b) is a notice—

(a) stating that the Authority proposes to prescribe or determine standards of performance and setting out the standards of performance proposed;

(b) stating the reasons why it proposes to prescribe or determine those standards of performance; and

(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations with respect to the proposals may be made.

(3) A notice required by subsection (1)(b) shall be published in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of those likely to be affected by the proposals.

(4) The persons or bodies to be consulted by the Authority under subsection (1)(c) are—

(a) gas suppliers (in the case of standards of performance under section 33A or 33B) or gas transporters and gas suppliers (in the case of standards of performance under section 33AA or 33BA); and

(b) persons or bodies appearing to the Authority to be representative of persons likely to be affected by the regulations or determination.

(5) The Authority shall make arrangements for securing that notices under subsection (1)(b), regulations under section 33A or 33AA and determinations under section 33B or 33BA are made available to the public by whatever means it considers appropriate.]

Textual Amendments

F152 S. 33BAA inserted (16.5.2001 for certain purposes and otherwise 1.10.2001) by 2000 c. 27, s. 92; S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Valid from 01/10/2001

[F153 33BC Promotion of the efficient use by consumers of gas. E+W+S

(1) The Secretary of State may by order impose—

(a) on each gas transporter (or each gas transporter of a specified description); and

(b) on each gas supplier (or each gas supplier of a specified description),

an obligation to achieve, within a specified period and in accordance with the order, the energy efficiency target to be determined by the Authority under the order for that transporter or supplier (and that obligation is referred to in this section as an “energy efficiency obligation”).

(2) In this section “energy efficiency target” means a target for the promotion of improvements in energy efficiency, that is to say, efficiency in the use by consumers of gas conveyed through pipes, electricity or any other source of energy which is specified in the order.

(3) An order under this section may specify criteria by reference to which the Authority is to determine energy efficiency targets for the gas transporters and gas suppliers on whom obligations are imposed by the order.

(4) The Secretary of State and the Authority shall carry out their respective functions under this section in the manner he or it considers is best calculated to ensure that no gas transporter is unduly disadvantaged in competing with other gas transporters and no gas supplier is unduly disadvantaged in competing with other gas suppliers.

(5) The order may make provision generally in relation to the energy efficiency obligations which it imposes, including in particular provision—

(a) as to the treatment of persons who become gas transporters or gas suppliers after the beginning of the period to which the order relates;

(b) as to the action which qualifies for the purpose of meeting the whole or any part of an energy efficiency target;

(c) as to the method by which improvements in energy efficiency attributable to any qualifying action are to be assessed;

(d) requiring transporters and suppliers to give to the Authority specified information, or information of a specified nature, about their proposals for complying with their energy efficiency obligations;

(e) requiring the Authority to determine—

(i) whether any proposed action qualifies for the purpose of achieving the whole or any part of a person’s energy efficiency target; and

(ii) if so, what improvement in energy efficiency is to be attributed for that purpose to the proposed action or to any result of that action specified in the determination; and

(f) requiring transporters or suppliers to produce to the Authority evidence of a specified kind demonstrating that they have complied with their energy efficiency obligations.

(6) The order may make provision authorising the Authority to require a transporter or supplier to provide it with specified information, or information of a specified nature, relating to—

(a) his proposals for complying with his energy efficiency obligation; or

(b) the question whether he has complied with that obligation.

(7) The order may make provision as to circumstances in which—

(a) a person’s energy efficiency target may be altered during the period to which the order relates;

(b) the whole or any part of a person’s energy efficiency target may be treated as having been achieved by action taken otherwise than by or on behalf of that person;

(c) any action taken before the period to which the order relates may be treated as qualifying action taken during that period;

(d) the whole or any part of a person’s energy efficiency target may be transferred to another gas transporter or gas supplier or to an electricity distributor or electricity supplier (within the meaning of Part I of the M20 Electricity Act 1989); or

(e) a person may carry forward the whole or any part of his energy efficiency target for the period to which the order relates to a subsequent period.

(8) The order may—

(a) provide for exceptions from any requirement of the order;

(b) provide that any specified requirement contained in it is to be treated as a relevant requirement for the purposes of this Part;

(c) make supplementary, incidental and transitional provision; and

(d) subject to subsection (4), make different provision for different cases (including different provision in relation to different transporters or suppliers).

(9) The order may include provision for treating the promotion of the supply to premises of—

(a) electricity generated by a generating station which is operated for the purposes of producing heat, or a cooling effect, in association with electricity;

(b) heat produced in association with electricity or steam produced from (or air or water heated by) such heat; or

(c) any gas or liquid subjected to a cooling effect produced in association with electricity,

as promotion of improvements in energy efficiency.

(10) No person shall be required by virtue of this section to provide any information which he could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.

(11) Before making an order under this section the Secretary of State shall consult the Authority, the Council, gas transporters and gas suppliers and such other persons as he considers appropriate.

(12) An order under this section shall not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.]

Textual Amendments

F153 S. 33BC substituted (1.10.2001) for s. 33BB by 2000 c. 27, s. 99; S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

Modifications etc. (not altering text)

C29 Definition of

“energy efficiency target”

in s. 33BC(2) modified (15.12.2001) by S.I. 2001/4011, art. 5

Marginal Citations

M20 1989 c. 29.

[F154 33BB Standards for promoting efficient use of gas. E+W+S

(1) The Director may, after consulting gas suppliers and persons or bodies appearing to him to be representative of persons likely to be affected, from time to time—

(a) determine such standards of performance in connection with the promotion of the efficient use of gas by consumers as, in his opinion, ought to be achieved by gas suppliers; and

(b) arrange for the publication, in such form and in such manner as he considers appropriate, of the standards so determined.

(2) Different standards may be determined for different gas suppliers if the Director is of the opinion that the differences are such that no gas supplier would be unduly disadvantaged in competing with other gas suppliers.

(3) Each gas supplier shall, in such form and manner and with such frequency as the Director may direct, take steps to inform his customers of—

(a) the standards determined under this section which are applicable to that supplier; and

(b) that supplier’s level of performance as respects those standards.]

Textual Amendments

F154 S. 33BB inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 36; S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C30 S. 33BB extended (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 21; S.I. 1996/218, art. 2

[33C F155 Information with respect to levels of performance. E+W+S

(1) The Director shall from time to time collect information with respect to—

(a) the compensation made by [F156 gas suppliers]] under section 33A above;

(b) the levels of overall performance achieved by [F156 gas suppliers] in connection with the provision of gas supply services; and

(c) the levels of performance achieved by [F156 gas suppliers] in connection with the promotion of the efficient use of gas by consumers.

(2) At such times as the Director may direct, each [F157 gas supplier] shall give the following information to the Director—

(a) as respects each standard prescribed by regulations under section 33A above, the number of cases in which compensation was made and the aggregate amount or value of that compensation; and

(b) as respects each standard determined under [F158 section 33B or 33BB] above, such information with respect to the level of performance achieved by the supplier as may be so specified.

(3) A [F159 gas supplier] who without reasonable excuse fails to do anything required of him by subsection (2) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4) The Director shall, at least once in every year, arrange for the publication, in such form and in such manner as he considers appropriate, of such of the information collected by or given to him under this section as appears to him expedient to give to customers, or potential customers, of [F160 gas suppliers].

(5) In arranging for the publication of any such information, the Director shall have regard to the need for excluding, so far as practicable—

(a) any matter which relates to the affairs of an individual, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that individual; and

(b) any matter which relates specifically to the affairs of a particular body of persons, whether corporate or unincorporate, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that body.

Textual Amendments

F155 S. 33C inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 12; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F156 Words in s. 33C(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 36(1); S.I. 1996/218, art. 2

F157 Words in s. 33C(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 37(2)(a); S.I. 1996/218, art. 2

F158 Words in s. 33C(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 37(2)(b); S.I. 1996/218, art. 2

F159 Words in s. 33C(3) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 37(3); S.I. 1996/218, art. 2

F160 Words in s. 33C(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 37(4); S.I. 1996/218, art. 2

[33D F161 Information to be given to customers about overall performance. E+W+S

(1) Each [F162 gas supplier]] shall, in such form and manner and with such frequency as the Director may direct, take steps to inform his customers of—

(a) the standards of overall performance determined under section 33B above which are applicable to that supplier; and

(b) that supplier’s level of performance as respects each of those standards.

(2) In giving any such direction, the Director shall not specify a frequency of less than once in every period of twelve months.

[F163 (3) Where the standards of performance mentioned in subsection (1) above relate to the provision of gas supply services to customers of a particular class or description, the reference in that subsection to the supplier’s customers shall be construed as a reference to such of his customers as are of that class or description.]

Textual Amendments

F161 S. 33D inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 13; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F162 Words in s. 33D(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 38(1); S.I. 1996/218, art. 2

F163 S. 33D(3) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 38(2); S.I. 1996/218, art. 2

[F164 33DA Publication of statistical information about standards of performance. E+W+S

(1) It shall be the duty of the Council to publish, in such form and manner and with such frequency as it thinks appropriate, such statistical information as it considers appropriate in relation to—

(a) the levels of performance achieved by gas suppliers and gas transporters in respect of—

(i) standards of performance prescribed or determined under sections 33A, 33AA, 33B and 33BA; and

(ii) energy efficiency obligations imposed by order under section 33BC; and

(b) complaints made by consumers about any matter relating to the activities of such suppliers or transporters and the handling of such complaints.

(2) In subsection (1)(b) “complaints” includes complaints made directly to gas suppliers and gas transporters (or anyone carrying on activities on their behalf) and complaints to the Authority or the Council.]

Textual Amendments

F164 S. 33DA inserted (7.11.2000 for certain purposes and otherwise 1.10.2001) by 2000 c. 27, s. 20(5); S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[[F166 33E F165 Procedures for dealing with complaints. E+W+S

(1) Each [F167 gas supplier who is authorised to supply gas to domestic customers and whose licence incorporates the standard conditions]] shall establish a procedure for dealing with complaints made by his [F168 domestic customers or potential domestic customers] in connection with the provision of gas supply services.

(2) No such procedure shall be established, and no modification of such a procedure shall be made, unless—

F166 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the proposed procedure or modification has been approved by the Director.

(3) The [F169 gas supplier] shall—

(a) publicise the procedure in such manner as may be approved by the Director; and

(b) send a description of the procedure, free of charge, to any person who asks for one.

(4) The Director may give a direction to a [F169 gas supplier] requiring the supplier to review his procedure or the manner in which it operates.

(5) A direction under subsection (4) above—

(a) may specify the manner in which the review is to be conducted; and

(b) shall require a written report of the review to be made to the Director.

(6) Where the Director receives a report under subsection (5)(b) above, he may, after consulting the [F169 gas supplier], direct him to make such modifications of—

(a) the procedure; or

(b) the manner in which the procedure operates,

as may be specified in the direction.

(7) Subsection (2) above does not apply to any modification made in compliance with a direction under subsection (6) above.]

Textual Amendments

F165 S. 33E inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 14; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F166 S. 33E shall cease to have effect (7.11.2000) by virtue of 2000 c. 27, s. 108, Sch. 6 Pt. I para. 15; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12) and is repealed (7.11.2000 for s. 33E(2)(a) and otherwiseprosp.) by 2000 c. 27, ss. 108, 110(2), Sch. 6 Pt. I para. 15, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

F167 Words in s. 33E(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 39(1)(a); S.I. 1996/218, art. 2

F168 Words in s. 33E(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 39(1)(b); S.I. 1996/218, art. 2

F169 Words in s. 33E(2)-(4)(6) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 39(2); S.I. 1996/218, art. 2

Valid from 01/10/2001

[F170 Service standards and remuneration E+W+S

Textual Amendments

F170 S. 33F and cross heading inserted (1.10.2001) by 2000 c. 27, s. 97; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

33F F171 Remuneration and service standards. E+W+S

(1) This section applies to any company which is authorised by a licence to carry on activities subject to price regulation.

(2) As soon as reasonably practicable after the end of each financial year of the company it must make a statement to the Authority—

(a) disclosing whether or not remuneration has been paid or become due during that financial year to the directors of the company as a result of arrangements falling within subsection (3); and

(b) where such remuneration has been paid or become due, describing the arrangements and the remuneration.

(3) Arrangements fall within this subsection if they are arrangements for linking the remuneration of the directors of the company to levels of performance as respects service standards in connection with activities subject to price regulation.

(4) A description under subsection (2)(b) must include in particular—

(a) a statement of when the arrangements were made;

(b) a description of the service standards in question;

(c) an explanation of the means by which the levels of performance as respects those service standards are assessed; and

(d) an explanation of how the remuneration was calculated.

(5) The statement required by subsection (2) must also state—

(a) whether or not there are in force in respect of the financial year during which the statement is made arrangements falling within subsection (3); or

(b) if not, whether the company intends that such arrangements will be in force at some time during that financial year,

and if there are, or it is intended that there will be, such arrangements in force the statement must describe those arrangements.

(6) A description under subsection (5) must—

(a) include in particular the matters listed in subsection (4)(a), (b) and (c); and

(b) where the arrangements described are different from any arrangements described under subsection (2)(b), state the likely effect of those differences on the remuneration of each director of the company.

(7) The statement required by subsection (2) must be made to the Authority in such manner as may be required by the Authority.

(8) The statement required by subsection (2)—

(a) must be published by the company making the statement in such manner as it reasonably considers will secure adequate publicity for it; and

(b) may be published by the Authority in such manner as it may consider appropriate.

(9) The duty of a company under this section applies in respect of any person who has at any time been a director of the company.

(10) In this section—

• “activities subject to price regulation”, in relation to any company, are activities for which—

  (a)

  a maximum price which may be charged by the company, or a method for calculating such a maximum price; or

  (b)

  a maximum revenue which may be received by the company, or a method for calculating such a maximum revenue,

  is determined by or under the licence granted under this Part;

• “company” means a company within the meaning of the M21 Companies Act 1985 which is limited by shares;

• “remuneration” in relation to a director of a company—

  (a)

  means any form of payment, consideration or other benefit (including pension benefit), paid or due to or in respect of the director; and

  (b)

  includes remuneration in respect of any of his services while a director of the company;

• “service standards” in relation to any company, means standards relating to the quality of service received by customers or potential customers of the company, including any such standards which are—

  (a)

  set by or under any conditions included in a licence granted under this Part;

  (b)

  prescribed by the Authority in regulations made under section 33A and 33AA;

  (c)

  determined by the Authority under section 33B or 33BA; or

  (d)

  set or agreed to by the company.]

Textual Amendments

F171 S. 33F and cross heading inserted (1.10.2001) by 2000 c. 27, s. 97; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Marginal Citations

M21 1985 c. 6.

Other functions of Director E+W+S

34 General functions. E+W+S

(1) It shall be the duty of the Director, so far as it appears to him practicable from time to time, to keep under review the carrying on both within and outside Great Britain of

[F172 (a) such activities as are mentioned in section 5(1) above; and

(b) activities ancillary to such activities (including in particular the storage of gas, the provision and reading of meters and the provision of pre-payment facilities).]

(2) It shall also be the duty of the Director, so far as it appears to him practicable from time to time, to collect information with respect to

[F173 (a) the carrying on of such activities as are mentioned in subsection (1) above; and

(b) the persons by whom such activities are carried on,]

with a view to his becoming aware of, and ascertaining the circumstances relating to, matters with respect to which his functions are exercisable.

(3) The Secretary of State may give general directions indicating—

(a) considerations to which the Director should have particular regard in determining the priority in which matters are to be brought under review in the performance of his duty under subsection (1) or (2) above; and

(b) considerations to which, in cases where it appears to the Director that any of his functions are exercisable, he should have particular regard in determining whether to exercise those functions.

(4) It shall be the duty of the Director, where either he considers it expedient or he is requested by the Secretary of State or the Director General of Fair Trading to do so, to give information, advice and assistance to the Secretary of State or that Director with respect to any matter in respect of which any function of the Director [F174 or the Secretary of State.] is exercisable.

[F175 (5) The Director shall have power to make agreements with the Health and Safety Commission for the Director to perform on behalf of that Commission or the Health and Safety Executive (with or without payment) any of the functions of that Commission or, as the case may be, that Executive.]

Textual Amendments

F172 S. 34(1)(a)(b) substituted for words in s. 34(1) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 40(1); S.I. 1996/218, art. 2

F173 S. 34(2)(a)(b) substituted for words in s. 34(2) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 40(2); S.I. 1996/218, art. 2

F174 Words in s. 34(4) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 40(3); S.I. 1996/218, art. 2

F175 S. 34(5) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 40(4); S.I. 1996/218, art. 2

[F176 35 Publication of advice and information about consumer matters. E+W+S

(1) If it appears to the Authority that the publication of any advice and information would promote the interests of consumers in relation to gas conveyed through pipes, the Authority may publish that advice or information in such manner as it thinks fit.

(2) In publishing advice or information under this section the Authority shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where publication of that matter would or might, in the opinion of the Authority, seriously and prejudicially affect the interests of that individual or body.

(3) Before deciding to publish under this section any advice or information relating to a particular individual or body of persons the Authority shall consult that individual or body.

(4) In this section “consumers” includes both existing and future consumers.]

Textual Amendments

F176 S. 35 substituted (20.12.2000) by 2000 c. 27, s. 6(1); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

36 Keeping of register. E+W+S

[F177 (1) The Director shall keep a register of notifications and directions under [F178 paragraph 5 of Schedule 2A to this Act], exemptions granted under section 6A above to particular persons, [F179 licences under section 7 or 7A] above and final and provisional orders at such premises and in such form as he may determine.

(2) Subject to any direction given under subsection (3) below, the Director shall cause to be entered in the register the provisions of—

(a) every notification or direction under [F180 paragraph 5 of Schedule 2A to this Act];

(b) every exemption granted under section 6A above to a particular person and every revocation of such exemption;

(c) every revocation made otherwise than by order of an exemption granted under that section to persons of a particular class [F181 and every direction under subsection (5) of that section];

(d) every [F182 licence under section 7 or 7A] above and every modification or revocation of, and every direction or consent given or determination made under, [F183 such a licence]; and

(e) every final or provisional order, every revocation of such an order and every notice under section 28(6) above.]

(3) If it appears to the Secretary of State that the entry of any provision in the register would be against the public interest or the commercial interests of any person, he may direct the Director not to enter that provision in the register.

(4) The register shall be open to public inspection during such hours and subject to payment of such fee as may be prescribed by an order made by the Secretary of State.

(5) Any person may, on payment of such fee as may be prescribed by an order so made, require the Director to supply to him a copy of or extract from any part of the register, certified by the Director to be a true copy or extract.

(6) Any sums received by the Director under this section shall be paid into the Consolidated Fund.

(7) In this section “final order” and “provisional order” have the same meanings as in section 28 above.

Textual Amendments

F177 S. 36(1)(2) substituted (31.10.1994) by 1993 c. 1, s. 3; S.I. 1994/2568, art. 2

F178 Words in s. 36(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 42(1)(a); S.I. 1996/218, art. 2

F179 Words in s. 36(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 42(1)(b); S.I. 1996/218, art. 2

F180 Words in s. 36(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 42(2)(a); S.I. 1996/218, art. 2

F181 Words in s. 36(2) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 42(2)(b); S.I. 1996/218, art. 2

F182 Words in s. 36(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 42(2)(c); S.I. 1996/218, art. 2

F183 Words in s. 36(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 42(2)(d); S.I. 1996/218, art. 2

[36A F184 Functions with respect to competition. E+W+S

(1) If and to the extent that he is requested by the Director General of Fair Trading to do so, it shall be the duty of the Director to exercise the functions of that Director under Part III of the M22 Fair Trading Act 1973 (“the 1973 Act”) so far as relating to courses of conduct which are or may be detrimental to the interests of consumers of gas conveyed through pipes, whether those interests are economic or interests in respect of health, safety or other matters; and references in that Part to that Director shall be construed accordingly.

(2) There are hereby transferred to the Director (so as to be exercisable concurrently with the Director General of Fair Trading)—

(a) the functions of that Director under sections 44 and 45 of the 1973 Act;

(b) the functions of that Director under sections 50, 52, 53, 86 and 88 of that Act; and

(c) the functions of that Director under sections 56A to 56G of that Act,

so far as relating to monopoly situations which exist or may exist in relation to commercial activities connected with the carrying on of activities to which this subsection applies; and references in Part IV and sections 86, 88 and 133 of that Act to that Director shall be construed accordingly.

[F185 (3) The Director shall be entitled to exercise, concurrently with the Director General of Fair Trading, the functions of that Director under the provisions of Part I of the Competition Act 1998 (other than sections 38(1) to (6) and 51), so far as relating to—

(a) agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act, or

(b) conduct of the kind mentioned in section 18(1) of that Act,

which relate to the carrying on of activities to which this subsection applies.

(3A) So far as necessary for the purposes of, or in connection with, the provisions of subsection (3) above, references in Part I of the Competition Act 1998 to the Director General of Fair Trading are to be read as including a reference to the Director (except in sections 38(1) to (6), 51, 52(6) and (8) and 54 of that Act and in any other provision of that Act where the context otherwise requires).]]

(4) Subsections (2) and (3) above apply to—

(a) such activities as are mentioned in section 5(1) above; and

(b) activities ancillary to such activities as are so mentioned (including in particular the storage of gas, the provision and reading of meters and the provision of pre-payment facilities).

(5) Before either Director first exercises in relation to any matter functions [F186 mentioned in] any of the following provisions, namely—

(a) paragraph (a) of subsection (2) above;

(b) paragraph (b) of that subsection; [F187 and]

(c) paragraph (c) of that subsection; F188 . . .

F188 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

he shall consult the other Director; and neither Director shall exercise in relation to any matter functions transferred by any of those provisions if functions [F186 mentioned in] that provision have been exercised in relation to that matter by the other Director.

(6) It shall be the duty of the Director, for the purpose of assisting the [F189 Competition Commission] in carrying out an investigation on a reference made to them by the Director by virtue of subsection (2) F190 . . . above, to give to the Commission—

(a) any information which is in his possession and which relates to matters falling within the scope of the investigation and—

(i) is requested by the Commission for that purpose; or

(ii) is information which in his opinion it would be appropriate for that purpose to give to the Commission without any such request; and

(b) any other assistance which the Commission may require and which it is within his power to give, in relation to any such matters,

and the Commission shall, for the purposes of carrying out any such investigation, take into account any information given to them for that purpose under this subsection.

(7) If any question arises as to whether subsection (2) or (3) above applies to any particular case, that question shall be referred to and determined by the Secretary of State; and no objection shall be taken to anything done under—

(a) Part IV or section 86 or 88 of the 1973 Act; or

[F191 (b) Part I of the Competition Act 1998 (other than sections 38(1) to (6) and 51),]

by or in relation to the Director on the ground that it should have been done by or in relation to the Director General of Fair Trading.

(8) Section 93B of the 1973 Act (offences of supplying false or misleading information to the Secretary of State, the Director General of Fair Trading or the [F189 Competition Commission] in connection with their functions under Parts IV, V, VI or VIII of the 1973 Act F192 . . .) shall have effect, so far as relating to functions exercisable by the Director by virtue of subsection (2) [F193 above and paragraph 1 of Schedule 10 to the Competition Act 1998], as if the reference in subsection (1)(a) of that section to the Director of Fair Trading included a reference to the Director.

(9) Expressions used in this section which are also used in the 1973 Act F194 . . . have the same meanings as in that Act.

(10) Any reference in this Part to functions of the Director under this Part, or to functions assigned to him by or under this Part, includes a reference to functions [F195 mentioned in subsection (2) or (3) above.].

Textual Amendments

F184 S. 36A inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 43; S.I. 1996/218, art. 2

F185 S. 36A(3)(3A) substituted for s. 36A(3) (26.11.1998 for specified purposes and otherwise 1.3.2000) by 1998 c. 41, s. 66(5), Sch. 10 Pt. II para. 3(5) (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

F186 Words in s. 36A(5) substituted (26.11.1998 in accordance with art. 2 of the commencing S.I. and otherwise 1.3.2000) by 1998 c. 41, s. 66(5), Sch. 10 Pt. II para. 3(6)(a) (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

F187 Word in s. 36A(5) inserted (26.11.1998 for specified purposes and otherwise 1.3.2000) by 1998 c. 41, s. 66(5), Sch. 10 Pt. II para. 3(6)(b) (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

F188 S. 36A(5)(d) and word preceding it repealed (26.11.1998 in accordance with art. 2 of the commencing S.I. and otherwise 1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. II para. 3(6)(c), Sch. 14 Pt. I (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

F189 Words in s. 36A(6)(8) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F190 Words in s. 36A(6) repealed (26.11.1998 for specified purposes and otherwise 1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. II para. 3(7), Sch. 14 Pt. I (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

F191 S. 36A(7)(b) substituted (26.11.1998 for specified purposes and otherwise 1.3.2000) by 1998 c. 41, s. 66(5), Sch. 10 Pt. II para. 3(8) (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

F192 Words in s. 36A(8) repealed (26.11.1998 for specified purposes and otherwise 1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. II para. 3(9)(a), Sch. 14 Pt. I (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

F193 Words in s. 36A(8) substituted (26.11.1998 for specified purposes and otherwise 1.3.2000) by 1998 c. 41, s. 66(5), Sch. 10 Pt. II para. 3(9)(b) (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

F194 Words in s. 36A(9) repealed (26.11.1998 in accordance with art. 2 of the commencing S.I. and otherwise 1.3.2000) by 1998 c. 41, ss. 66(5), 74(3), Sch. 10 Pt. II para. 3(10), Sch. 14 Pt. I (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

F195 Words in s. 36A(10) substituted (26.11.1998 for certain purposes and otherwise 1.3.2000) by 1998 c. 41, s. 66(5), Sch. 10 Pt. II para. 3(11) (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

Modifications etc. (not altering text)

C31 S. 36A(3) restricted (26.11.1998 for specified purposes, otherwise 1.3.2000) by 1998 c. 41, s. 66(5), Sch. 10 Pt. II para. 3(1) (with s. 73); S.I. 1998/2750, art. 2; S.I. 2000/344, art. 2 Sch.

Marginal Citations

M22 1973 c. 41.

[F196 36B Functions with respect to gas measuring equipment etc. E+W+S

(1) If and to the extent that the Secretary of State so directs, the functions of the Secretary of State under section 6 of the M23 Weights and Measures Act 1985 (testing of standards and equipment) so far as relating to—

(a) any article used or proposed to be used as a standard of a unit of measurement in relation to gas;

(b) any measuring equipment, or other metrological equipment, for use in relation to gas; or

(c) any article for use in connection with any such equipment,

shall be exercisable by the Director concurrently with the Secretary of State; and references in that section to the Secretary of State shall be construed accordingly.

(2) Any sums received by the Director by virtue of this section shall be paid into the Consolidated Fund.]

Textual Amendments

F196 S. 36B inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 44; S.I. 1996/218, art. 2

Marginal Citations

M23 1985 c.72.

[F197 37 Maximum prices for reselling gas. E+W+S

(1) The Director shall from time to time direct that the maximum prices at which gas supplied by gas suppliers may be resold—

(a) shall be such as may be specified in the direction; or

(b) shall be calculated by such method and by reference to such matters as may be so specified,

and shall publish directions under this section in such manner as in his opinion will secure adequate publicity for them.

(2) A direction under this section may—

(a) require any person who resells gas supplied by a gas supplier to furnish the purchaser with such information as may be specified or described in the direction; and

(b) provide that, in the event of his failing to do so, the maximum price applicable to the resale shall be such as may be specified in the direction, or shall be reduced by such amount or such percentage as may be so specified.

(3) Different directions may be given under this section as respects different classes of cases, which may be defined by reference to areas or any other relevant circumstances.

(4) If any person resells any gas supplied by a gas supplier at a price exceeding the maximum price determined by or under a direction under this section and applicable to the resale—

(a) the amount of the excess; and

(b) if the direction so provides, interest on that amount at a rate specified or described in the direction,

shall be recoverable by the purchaser.

(5) Nothing in this section shall apply in relation to the resale of gas for use in a motor vehicle which is constructed or adapted to use gas as fuel for its propulsion.]

Textual Amendments

F197 S. 37 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 45; S.I. 1996/218, art. 2

38 Power to require information etc. E+W+S

(1) Where it appears to the Director that a [F198 licence holder] may be contravening, or may have contravened, any relevant condition or requirement, the Director may, for any purpose connected with the exercise of his functions under section 28 [F199 31 or 33E] above in relation to that matter, by notice signed by him—

(a) require any person to produce, at a time and place specified in the notice, to the Director or to any person appointed by him for the purpose, any documents which are specified or described in the notice and are in that person’s custody or under his control; or

(b) require any person carrying on any business to furnish to the Director such information as may be specified or described in the notice, and specify the time, the manner and the form in which any such information is to be furnished;

F200 . . .

[F201 (1A) Where a licence has been or is to be revoked or suspended, or has expired or is about to expire by effluxion of time, and it appears to the Director, having regard to the duties imposed by section [F202 4AA, 4AB or 4A], to be requisite or expedient to do so for any purpose connected with the revocation, suspension or expiry, the Director may, with the consent of the Secretary of State, by notice signed by him—

(a) require the licence holder to produce, at a time and place specified in the notice, to the Director, or to any person so specified, any records which are specified or described in the notice and are in the licence holder’s custody or under his control; or

(b) require the licence holder to furnish to the Director, or to any person specified in the notice, such information as may be specified or described in the notice, and specify the time, the manner and the form in which any such information is to be furnished.

(1B) No person shall be compelled for any such purpose as is mentioned in subsection (1) or (1A) above to produce any documents or records which he could not be compelled to produce in civil proceedings before the court or, in complying with any requirement for the furnishing of information, to give any information which he could not be compelled to give in evidence in such proceedings.]

(2) A person who without reasonable excuse fails to do anything duly required of him by a notice under subsection (1) [F203 or (1A)]above shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(3) A person who intentionally alters, suppresses or destroys any document [F204 or records]which he has been required by any such notice to produce shall be guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

(4) If a person makes default in complying with a notice under subsection (1) [F203 or (1A)]above, the court may, on the application of the Director, make such order as the court thinks fit for requiring the default to be made good; and any such order may provide that all the costs or expenses of and incidental to the application shall be borne by the person in default or by any officers of a company or other association who are responsible for its default.

(5) In this section—

• “relevant condition” and “relevant requirement” have the same meanings as in section 28 above;

• “the court” has the same meaning as in section 30 above.

Textual Amendments

F198 Words in s. 38(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 46(1)(a); S.I. 1996/218, art. 2

F199 Words in s. 38(1) substituted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 56(6), Sch. 1 para. 7; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F200 Words in s. 38(1) repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 46(1)(b), Sch. 6; S.I. 1996/218, art. 2

F201 S. 36(1A)(1B) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 46(2); S.I. 1996/218, art. 2

F202 Words in s. 38(1A) substituted (20.12.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 17(a); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F203 Words in s. 38(2)(4) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 46(3); S.I. 1996/218, art. 2

F204 Words in s. 38(3) substituted (20.12.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 17(b); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

[F205 38A Duty to consider representations and give reasons. E+W+S

(1) The Secretary of State may by order exercise any one or more of the powers conferred by subsections (2) to (4) below.

(2) This subsection confers power to provide that, before the Director makes a specified decision in relation to a licence holder, the Director—

(a) shall give to the licence holder a written notice stating—

(i) that he is considering making the decision and the reasons why he is considering doing so; and

(ii) that the licence holder may, within a period specified in the notice, make written representations to him or, if the licence holder so requests, make oral representations to a person appointed by him for the purpose; and

(b) shall consider any representations which are duly made and not withdrawn.

(3) This subsection confers power to provide that, where the Director makes a specified decision in relation to a licence holder, the Director shall as soon as practicable give to the licence holder a written notice explaining why it appeared to him to be appropriate to make the decision.

(4) This subsection confers power to provide that, where a specified decision made or proposed to be made in relation to a licence holder will or may materially affect any specified person, any provision made by virtue of subsection (2) or (3) above shall, with any specified modifications, apply in relation to that person.

(5) Nothing in any order made under this section shall require the Director to disclose any information the disclosure of which he considers would or might seriously and prejudicially affect the interests of a particular individual or body of persons, whether corporate or unincorporate.

(6) An order under this section—

(a) may make different provision in relation to different cases or different circumstances; and

(b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In this section—

• “decision” means any decision under this Part, or under a condition of a licence, other than a decision to make a provisional order under section 28 above;

• “specified”, in relation to an order under this section, means specified in the order or of a description so specified;

and references to a licence holder include references to an applicant for a licence.]

Textual Amendments

F205 S. 38A inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 47; S.I. 1996/218, art. 2

[F206 39 Annual and other reports. E+W+S

(1) The Director shall, as soon as practicable after the end of the year 1986 and of each subsequent calendar year, make to the Secretary of State a report on—

(a) his activities during that year; and

(b) the [F207 Competition Commission’s] activities during that year so far as relating to references made by him.

(2) Every such report shall include a general survey of developments, during the year to which it relates, in respect of matters falling within the scope of the Director’s functions and shall set out any general directions given to the Director during that year under section 34(3) above.

[F208 (2A) Every such report shall also include—

(a) a general statement as to the extent to which, during the year to which it relates, there has been effective competition in the carrying on of activities the carrying on of which is required to be licensed under section 7A above; and

(b) a general survey of developments during that year in respect of such competition.]

(3) The Secretary of State shall lay a copy of every report made by the Director under subsection (1) above before each House of Parliament, shall send a copy of every such report to the Council and shall arrange for copies of every such report to be published in such a manner as he may consider appropriate.

(4) The Director may also prepare such other reports as appear to him to be expedient with respect to such matters as are mentioned in subsection (2) above.

(5) The Director shall send a copy of any report prepared under subsection (4) above to the Council and may arrange for copies of any such report to be published in such manner as he may consider appropriate.

(6) In making or preparing any report under this section the Director shall have regard to the need for excluding, so far as that is practicable, the matters specified in section 35(2)(a) and (b) above.]

Textual Amendments

F206 S. 39 cease to have effect (20.12.2000) by virtue of 2000 c. 27, s. 5(10) (with Sch. 7 para. 29); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F207 Words in s. 39(1)(b) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F208 S. 39(2A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 48; S.I. 1996/218, art. 2

Other functions of Council E+W+S

40 General duty to advise Director. E+W+S

It shall be the duty of the Council to advise the Director on any matter which—

(a) appears to the Council to be a matter F209 . . . in respect of which any of the Director’s functions are or may be exercisable; and

(b) is referred to it by the Director or is a matter on which it considers it should offer advice.

Textual Amendments

F209 Words in s. 40 repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 49, Sch. 6; S.I. 1996/218, art. 2

41 Annual reports. E+W+S

(1) The Council shall, as soon as practicable after the end of the year 1986 and of each subsequent calendar year, make to the Director and to the Secretary of State a report on its activities during that year.

(2) Every such report shall include a statement of the matters on which, during the year to which it relates, the Council has advised the Director under section 40 above.

(3) The Council shall arrange for every such report to be published in such manner as it considers appropriate.

(4) In making any such report, the Council shall have regard to the need for excluding, so far as that is practicable—

(a) any matter which relates to the affairs of an individual, where the publication of that matter would or might, in the opinion of the Council, seriously and prejudicially affect the interests of that individual; and

(b) any matter which relates specifically to the affairs of a particular body of persons, whether corporate or unincorporate, where publication of that matter would or might, in the opinion of the Council, seriously and prejudicially affect the interests of that body.

Valid from 01/10/2001

[F210 Adjustment of charges] E+W+S

Textual Amendments

F210 Ss. 41A, 41B and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 98; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F211 41A Adjustment of charges to help disadvantaged groups of customers. E+W+S

(1) If the Secretary of State considers that members of any group (a “disadvantaged group”) of customers of authorised suppliers are treated less favourably than other customers of theirs as respects charges for gas, he may make an order containing a scheme for the adjustment of charges for gas with a view to eliminating or reducing the less favourable treatment.

(2) The scheme may include—

(a) provision for the adjustment of charges by authorised shippers or authorised transporters (as well as by suppliers); and

(b) in relation to charges payable to suppliers, provision for the adjustment of charges payable by customers who are not members of the disadvantaged group (as well as by persons who are).

(3) The scheme shall—

(a) describe the disadvantaged group;

(b) specify the persons whose charges are covered by the scheme; and

(c) set out the basis of the adjustment of the charges.

(4) If the scheme does not relate to the whole of Great Britain, it shall specify the area or areas to which it relates.

(5) The scheme may—

(a) require authorised suppliers, authorised shippers or authorised transporters to supply information of any specified description, in any specified form, to any other such persons; and

(b) provide for the modification of conditions of licences,

for the purpose of facilitating the implementation of the scheme.

(6) An order shall not be made under this section unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.]

Textual Amendments

F211 Ss. 41A, 41B and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 98; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F212 41B Orders: supplementary. E+W+S

(1) Before making an order under section 41A, the Secretary of State shall give notice—

(a) stating that he proposes to make an order and setting out its effect;

(b) stating the reasons why he proposes to make the order; and

(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed order may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(2) The notice shall be given—

(a) by serving a copy of it on the persons whose charges are covered by the proposed order; and

(b) by publishing it in such manner as the Secretary of State considers appropriate for bringing the proposed order to the attention of other persons likely to be affected by it.

(3) An order under section 41A shall continue in force for such period not exceeding three years as is specified in the order; but that does not prevent the making of another order to come into force at the end of that period.

(4) The Secretary of State may by order require authorised suppliers, authorised shippers or authorised transporters to supply information of any specified description, in any specified form, to any other such persons for the purpose of enabling the making of an order under section 41A.

(5) The Authority—

(a) shall monitor the effect of orders under section 41A and report its findings to the Secretary of State whenever he directs it to do so; and

(b) may require authorised suppliers, authorised shippers or authorised transporters to supply to the Authority, in any specified form, such information as it requires for carrying out that duty.

(6) In section 41A references to customers do not include customers of a description excluded by an order made by the Secretary of State.

(7) In this section and section 41A “authorised shipper” means a person authorised by a licence or exemption to arrange with any gas transporter for gas to be introduced into, conveyed by means of, or taken out of a pipe-line system operated by that transporter.]

Textual Amendments

F212 Ss. 41A, 41B and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 98; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F213 Alteration of activities requiring licence] E+W+S

Textual Amendments

F213 Ss. 41C-41H and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 88 (with s. 104(1)(2)(6)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Valid from 01/10/2001

41C [F214 Power to alter activities requiring licence.] E+W+S

(1) The Secretary of State may by order provide—

(a) that specified activities are to become licensable activities; or

(b) that specified activities are to cease to be licensable activities.

(2) For the purposes of this Part activities are licensable activities if undertaking them without the authority of a licence or exemption constitutes an offence under section 5(1).

(3) An order under this section may make consequential, transitional, incidental or supplementary provision including—

(a) amendments (or repeals) in any provision of this Act or any other enactment; and

(b) provision modifying any standard conditions of licences or (in the case of an order under subsection (1)(a)) provision determining the conditions which are to be standard conditions for the purposes of licences authorising the undertaking of activities which are to become licensable activities.

(4) An order under this section may only provide for activities to become licensable activities if they are activities connected with—

(a) the conveyance of gas through pipes to premises or to pipe-line systems operated by gas transporters;

(b) the supply to premises of gas conveyed through pipes; or

(c) arranging with gas transporters for gas to be introduced into, conveyed by means of or taken out of pipe-line systems operated by the gas transporters.

(5) An order under this section providing for activities to become licensable activities may only be made on the application of the Authority made in accordance with section 41D.

(6) An order under this section providing for activities to cease to be licensable activities may be made either—

(a) on the application of the Authority made in accordance with section 41G; or

(b) following consultation by the Secretary of State in accordance with section 41H.

(7) An order under this section may provide that it is to remain in force only for a period specified in the order.

(8) An order shall not be made under this section unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

Textual Amendments

F214 Ss. 41C-41H and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 88 (with s. 104(1)(2)(6)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Valid from 01/10/2001

[F215 41D Application by Authority for order including new activities. E+W+S

(1) If the Authority proposes to make an application for an order providing for activities to become licensable activities, it shall give notice—

(a) stating that it proposes to make an application for an order providing for the activities to become licensable activities;

(b) setting out the conditions which it would expect such an order to determine to be standard conditions for the purposes of licences authorising the undertaking of the activities and any other conditions which it would expect to be included in such licences; and

(c) specifying a reasonable period (not being less than 28 days from the date of publication of the notice) within which representations or objections may be made with respect to the proposal,

and shall consider any representations or objections which are duly made and not withdrawn.

(2) The notice shall be given by serving a copy on the Council and by publishing it in such manner as the Authority considers appropriate for bringing it to the attention of—

(a) persons appearing to it to be carrying on, or be intending to carry on, the activities; and

(b) any other persons appearing to it to be likely to be affected by an order providing for the activities to become licensable activities.

(3) If an objection has been duly made (and not withdrawn) by a person who is carrying on or intends to carry on the activities, the Authority shall make a reference to the Competition Commission under section 41E before making the application.

(4) In any other case where the Authority considers it appropriate to make a reference to the Commission under section 41E before making the application, the Authority may make such a reference.

(5) If a reference is made to the Commission, the application shall not be made unless the Commission has reported on the reference that the fact that the activities to which the application relates are not licensable activities operates, or may be expected to operate, against the public interest.

(6) The application shall set out—

(a) the activities which the Authority considers should become licensable activities; and

(b) the conditions which the Authority would expect to be determined to be standard conditions for the purposes of licences authorising the undertaking of the activities in question and any other conditions which the Authority would expect to be included in such licences.]

Textual Amendments

F215 Ss. 41C-41H and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 88 (with s. 104(1)(2)(6)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Valid from 01/10/2001

[F216 41E References to Competition Commission. E+W+S

(1) A reference to the Competition Commission under this section shall require the Commission to investigate and report on whether the fact that the activities specified in the reference are not licensable activities operates, or may be expected to operate, against the public interest.

(2) The Authority may, at any time, by notice given to the Commission vary the reference by adding to the activities specified in the reference or by excluding from the reference some of the activities so specified; and on receipt of such notice the Commission shall give effect to the variation.

(3) The Authority shall specify in the reference, or a variation of the reference, for the purpose of assisting the Commission in carrying out the investigation on the reference—

(a) the conditions which the Authority would expect to be determined to be standard conditions for the purposes of licences authorising the undertaking of the activities specified in the reference and any other conditions which the Authority would expect to be included in such licences; and

(b) any effects adverse to the public interest which, in its opinion, the fact that the activities so specified are not licensable activities has or may be expected to have.

(4) As soon as practicable after making the reference, or a variation of the reference, the Authority shall serve a copy of it on the Council and publish particulars of it in such manner as the Authority considers appropriate for bringing it to the attention of—

(a) persons appearing to the Authority to be carrying on, or be intending to carry on, the activities specified in it; and

(b) any other persons appearing to the Authority to be likely to be affected by it.

(5) The Authority shall, for the purpose of assisting the Commission in carrying out the investigation on the reference, give to the Commission—

(a) any information which is in its possession and which relates to matters falling within the scope of the investigation, and which is either requested by the Commission for that purpose or is information which in its opinion it would be appropriate for that purpose to give to the Commission without any such request; and

(b) any other assistance which the Commission may require, and which it is within its power to give, in relation to any such matters,

and the Commission shall take account of the information for the purpose of carrying out the investigation.

(6) In determining for the purposes of this section whether the fact that particular activities are not licensable activities operates, or may be expected to operate, against the public interest, the Commission shall have regard to—

(a) the matters referred to in section 4AA;

(b) any social or environmental policies set out or referred to in guidance issued under section 4AB; and

(c) any advice given by the Health and Safety Commission under section 4A (advice about health and safety in relation to gas).

(7) The provisions mentioned in subsection (8) are to apply in relation to references under this section as if—

(a) the functions of the Commission in relation to those references were functions under the M24 Fair Trading Act 1973;

(b) the expression “merger reference” included a reference under this section;

(c) in section 70 of the M25 Fair Trading Act 1973—

(i) references to the Secretary of State were references to the Authority; and

(ii) the reference to three months were a reference to six months.

(8) The provisions are—

(a) sections 70 (time limit for report on merger), 85 (attendance of witnesses and production of documents) and 93B (false or misleading information) of the M26 Fair Trading Act 1973;

(b) Part II of Schedule 7 to the M27 Competition Act 1998 (performance of the Commission’s general functions); and

(c) section 24 of the M28 Competition Act 1980 (modification of provisions about performance of such functions).]

Textual Amendments

F216 Ss. 41C-41H and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 88 (with s. 104(1)(2)(6)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Marginal Citations

M24 1973 c. 41.

M25 1973 c. 41.

M26 1973 c. 41.

M27 1998 c. 41.

M28 1980 c. 21.

Valid from 20/06/2003

[F217 41EA References under section 41E: time limits E+W+S

(1) Every reference under section 41E above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made.

(2) A report of the Competition Commission on a reference under section 41E above shall not have effect (in particular for the purposes of section 41D(5) above) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by the Authority under subsection (3) below.

(3) The Authority may, if it has received representations on the subject from the Competition Commission and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months.

(4) No more than one extension is possible under subsection (3) above in relation to the same reference.

(5) The Authority shall publish an extension under subsection (3) above in such manner as it considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.]

Textual Amendments

F217 S. 41EA inserted (prosp.) by 2002 c. 40, ss. 278, 279, Sch. 25 para. 15(12)

Valid from 20/06/2003

[F218 41EB References under section 41E: application of Enterprise Act 2002 E+W+S

(1) The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections (2) and (3) below, for the purposes of references under section 41E above as they apply for the purposes of references under that Part—

(a) section 109 (attendance of witnesses and production of documents etc.);

(b) section 110 (enforcement of powers under section 109: general);

(c) section 111 (penalties);

(d) section 112 (penalties: main procedural requirements);

(e) section 113 (payments and interest by instalments);

(f) section 114 (appeals in relation to penalties);

(g) section 115 (recovery of penalties); and

(h) section 116 (statement of policy).

(2) Section 110 shall, in its application by virtue of subsection (1) above, have effect as if—

(a) subsection (2) were omitted; and

(b) in subsection (9) the words from “or section” to “section 65(3))” were omitted.

(3) Section 111(5)(b)(ii) shall, in its application by virtue of subsection (1) above, have effect as if—

(a) for the words “published (or, in the case of a report under section 50 or 65, given)” there were substituted “made”;

(b) for the words “published (or given)”, in both places where they appear, there were substituted “made”; and

(c) the words “by this Part” were omitted.

(4) Section 117 of the Enterprise Act 2002 (false or misleading information) shall apply in relation to functions of the Competition Commission in connection with references under section 41E above as it applies in relation to its functions under Part 3 of that Act but as if, in subsections (1)(a) and (2), the words “the OFT,” and “or the Secretary of State” were omitted.

(5) Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 109 to 117 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (1) or (4) above, have effect in relation to those sections as applied by virtue of those subsections.

(6) Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of those subsections.]

Textual Amendments

F218 S. 41EB inserted (prosp.) by 2002 c. 40, ss. 278, 279, Sch. 25 para. 15(12)

Valid from 01/10/2001

[F219 41F Reports on references. E+W+S

(1) In making a report on a reference under section 41E, the Competition Commission shall include in the report definite conclusions on whether the fact that the activities specified in the reference (or the reference as varied) are not licensable activities operates, or may be expected to operate, against the public interest.

(2) The Commission shall also include in the report such an account of its reasons for those conclusions as in its opinion is expedient for facilitating proper understanding of the questions raised by the reference and of its conclusions.

(3) Where the Commission concludes that the fact that particular activities are not licensable activities operates, or may be expected to operate, against the public interest, it shall specify in the report—

(a) the effects adverse to the public interest which that fact has or may be expected to have; and

(b) any modifications to the conditions specified in the reference in accordance with section 41E(3)(a) which they consider appropriate.

(4) Section 82 of the M29 Fair Trading Act 1973 (general provisions as to reports) shall apply in relation to reports of the Commission on references under section 41E as it applies to reports of the Commission under that Act.

(5) A report of the Commission on a reference under section 41E shall be made to the Authority.

(6) On receiving the report, the Authority shall send a copy of it to the Secretary of State.

(7) Subject to subsection (8), the Authority shall, not less than 14 days after the copy is received by the Secretary of State, send another copy to the Council and publish that other copy in such manner as the Authority considers appropriate for bringing the report to the attention of persons likely to be affected by it.

(8) If it appears to the Secretary of State that the publication of any matter in the report would be against the public interest or the commercial interests of any person, he may, before the end of the period of 14 days mentioned in subsection (7), direct the Authority to exclude that matter from the copy of the report to be sent to the Council and published under that subsection.]

Textual Amendments

F219 Ss. 41C-41H and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 88 (with s. 104(1)(2)(6)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Marginal Citations

M29 1973 c. 41.

Valid from 01/10/2001

[F220 41G Application by Authority for order excluding activities. E+W+S

(1) Before making an application for an order providing for activities to cease to be licensable activities the Authority shall give notice—

(a) stating that it proposes to make an application for an order providing for the activities to cease to be licensable activities; and

(b) specifying a reasonable period (not being less than 28 days from the date of publication of the notice) within which representations or objections may be made with respect to the proposal,

and shall consider any representations or objections duly made and not withdrawn.

(2) The notice shall be given—

(a) by serving a copy on the Secretary of State, the Health and Safety Executive and the Council; and

(b) by publishing it in such manner as the Authority considers appropriate for bringing it to the attention of persons likely to be affected by such an order.

(3) An application under this section shall set out—

(a) the activities which the Authority considers should cease to be licensable activities; and

(b) the Authority’s reasons for proposing that the order be made.]

Textual Amendments

F220 Ss. 41C-41H and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 88 (with s. 104(1)(2)(6)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Valid from 01/10/2001

[F221 41H Consultation by Secretary of State about order excluding activities. E+W+S

(1) If the Secretary of State proposes to make an order providing for activities to cease to be licensable activities (otherwise than on an application by the Authority under section 41G), he shall give notice—

(a) stating that he proposes to make an order providing for the activities to cease to be licensable activities; and

(b) specifying a reasonable period (not being less than 28 days from the date of publication of the notice) within which representations or objections may be made with respect to the proposal,

and shall consider any representations or objections duly made (and not withdrawn).

(2) The notice shall be given—

(a) by serving a copy on the Authority, the Health and Safety Executive and the Council; and

(b) by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons likely to be affected by such an order.]

Textual Amendments

F221 Ss. 41C-41H and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 88 (with s. 104(1)(2)(6)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F222 41I Service by Authority of certain notices on Council. E+W+S

Where the Authority is required by any provision of this Part to publish a notice or any other document, the Authority shall send a copy of the document to the Council.]

Textual Amendments

F222 S. 41I inserted (20.12.2000) by 2000 c. 27, s. 18(5);S.I. 2000/3343,art. 2, Sch. (subject to transitional provisions in arts. 3-15)

Miscellaneous E+W+S

42 General restrictions on disclosure of information. E+W+S

(1) Subject to the following provisions of this section, no information with respect to any particular business which—

(a) has been obtained under or by virtue of the provisions of this Part; and

(b) relates to the affairs of any individual or to any particular business,

shall, during the lifetime of that individual or so long as that business continues to be carried on, be disclosed without the consent of that individual or the person for the time being carrying on that business.

[F223 (1A) Subsection (1) above does not apply to any disclosure of information if—

(a) the disclosure is required by a notice under subsection (1) or (1A) of section 38 above;

(b) the information has been obtained in pursuance of a notice under subsection (1A) of that section; F224 . . .

[F225 (c) the disclosure is made by a licence holder and is required by a condition of his licence; or

(d) the disclosure is made by one licence holder to another and is required by that other licence holder for purposes connected with the carrying on of relevant activities.]

(1B) In subsection (1A) above “relevant activities”, in relation to a licence holder, means—

(a) activities which he is authorised by his licence to carry on; and

(b) in the case of a public gas transporter, such activities as are mentioned in section 7(1)(b) and (c) above.]

(2) Subsection (1) above does not apply to any disclosure of information which is made—

(a) for the purpose of facilitating the performance of any functions assigned to the Secretary of State, the Director or the [F226 Competition Commission] by or under this Part;

(b) for the purpose of facilitating the performance of any functions of any Minister of the Crown, the Director General of Fair Trading [F227 Competition Commission][F228 the Director General of Water Services][F229 the Director General of Electricity Supply][F230 the Rail Regulator] or a local weights and measures authority in Great Britain under any of the enactments [F231 or subordinate legislation] specified in subsection (3) below;

(c) for the purpose of facilitating the performance of any functions of the Health and Safety Executive under any enactment;[F232 (cc) for the purpose of facilitating the carrying out by the Comptroller and Auditor General of any of his functions under any enactment;]

(d) in connection with the investigation of any criminal offence or for the purposes of any criminal proceedings;

(e) for the purposes of any civil proceedings brought under or by virtue of this Part or any of the enactments [F233 or subordinate legislation] specified in subsection (3) below; or

(f) in pursuance of a Community obligation.

(3) The enactments [F234 and subordinate legislation] referred to in subsection (2) above are—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F235

(b) the M30 Trade Descriptions Act 1968;

(c) the M31 Fair Trading Act 1973;

(d) the M32 Consumer Credit Act 1974;

F236 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F236 (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F235

(h) the M33 Estate Agents Act 1979; F237

(i) the M34 Competition Act 1980.

[F238 (j) the M35 Consumer Protection Act 1987.]

[F239 (k) the M36 Control of Misleading Advertisements Regulations 1988]

[F240 (l) the M37 Water Act 1989 [F241 the M38 Water Industry Act 1991 or any of the other consolidation Acts (within the meaning of section 206 of that Act of 1991)].]

[F242 (m) the M39 Electricity Act 1989.]

[F243 (n) the Railways Act 1993]

[F244 (o) the Competition Act 1998]

[F245 (3A) The Secretary of State may by order provide that any of subsections (1A) to (3) above shall have effect subject to such modifications as are specified in the order.]

(4) Nothing in subsection (1) above shall be construed—

(a) as limiting the matters which may be published under section [F246 33C or] 35 above or may be included in, or made public as part of, a report of the Director, the Council or the [F226 Competition Commission] under any provision of this Part other than section 33(3) above; or

(b) as applying to any information which has been so published or has been made public as part of such a report.

(5) Any person who discloses any information in contravention of this section shall be guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

[F247 (6) In relation to the Consumer Protection Act 1987 the reference in subsection (2)(b) above to a weights and measures authority shall include a reference to any person on whom functions under that Act are conferred by regulations under section 27(2) of that Act.]

[F248 (7) Information obtained by the Director in the exercise of functions which are exercisable concurrently with the Director General of Fair Trading under Part I of the Competition Act 1998 is subject to sections 55 and 56 of that Act (disclosure) and not to subsections (1) to (6) of this section.]

Textual Amendments

F223 S. 42(1A)(1B) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 50(1); S.I. 1996/218, art. 2

F224 Word in s. 42(1A)(b) omitted (12.5.2000) by virtue of S.I. 2000/1122, art. 2(a)

F225 S. 42(1A)(c)(d) substituted (12.5.2000) for s. 42(1A)(c) by S.I. 2000/1122, art. 2(b)

F226 Words in s. 42(2)(a)(4)(a) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F227 Words in s. 42(2)(b) inserted (1.4.1999) by S.I. 1999/506, art. 20(c)

F228 Words inserted (E.W.) by Water Act 1989 (c. 15, SIF 130), s. 190(1), Sch. 25 para. 77(a) (with ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58)

F229 Words inserted by Electricity Act 1989 (c. 29, SIF 44:1), s. 112(1)(3), Sch. 16 para. 34(a), Sch. 17 para. 35(1)

F230 Words in s. 42(2)(b) inserted (6.1.1994) by 1993 c. 43, s. 152(1), Sch. 12 para. 24(1); S.I. 1993/3237, art. 2(2).

F231 Words inserted by S.I. 1988/915, reg. 7(6)(h)(i)

F232 S. 42(2)(cc) inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 56(6), Sch. 1 para 8(a); Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F233 Words inserted by S.I. 1988/915, reg. 7(6)(h)(i)

F234 Words inserted by S.I. 1988/915, reg. 7(6)(h)(ii)

F235 S. 42(3)(a)(g) repealed by Consumer Protection Act 1987 (c. 43, SIF 109:1), ss. 41(2), 47(1)(2), 48(3), Sch. 5

F236 S. 42(3)(e)(f) repealed (1.3.2000) by 1998 c. 41, ss. 66(5), 74(2)(3) Sch. 10 Pt. IV para. 10(6)(a), Sch. 14 Pt. I (with s. 73); S.I. 2000/344, art. 2 Sch.

F237 Word repealed by Consumer Protection Act 1987 (c. 43, SIF 109:1), ss. 41(2), 47(1)(2), 48(3), Sch. 5

F238 S. 42(3)(j) inserted by Consumer Protection Act 1987 (c. 43, SIF 109:1), ss. 41(2), 47(1)(2), 48(1), Sch. 4 para. 11(a)

F239 S. 42(3)(k) inserted by S.I. 1988/915, reg. 7(6)(h)(ii)

F240 S. 42(3)(l) inserted (E.W.) by Water Act 1989 (c. 15, SIF 130), s. 190(1), Sch. 25 para. 77(b), (with ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)-(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58)

F241 Words in s. 42(3)(l) inserted (E.W.) (1.12.1991) by Water Consolidation (Consequential Provisions) Act 1991 (c. 60, SIF 130), ss. 2(1), 4(2), Sch. 1 para. 45

F242 S. 42(3)(m) inserted by Electricity Act 1989 (c. 29, SIF 44:1), s. 112(1), (3). Sch. 16 para. 34(b), Sch. 17 para. 35(1)

F243 S. 42(3)(n) added (6.1.1994) by 1993 c. 43, s. 152(1), Sch. 12 para. 24(2); S.I. 1993/3237, art. 2(2).

F244 S. 42(3)(o) inserted (11.1.1999) by 1998 c. 41, ss. 66(5), 76(2)(3), Sch. 10 Pt. IV para. 10(6)(b) (with s. 73); S.I. 1998/3166, art. 2, Sch.

F245 S. 42(3A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 50(2); S.I. 1996/218, art. 2

F246 Words in s. 42(4)(a) inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), S. 56(6), Sch. 1 para 8(b); Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F247 S. 42(6) inserted by Consumer Protection Act 1987 (c. 43, SIF 109:1), ss. 41(2), 47(1)(2), 48(1), Sch. 4 para. 11(b)

F248 S. 42(7) inserted (1.3.2000) by 1998 c. 41, s. 6(5), Sch. 10 Pt. IV para. 10(7) (with s. 73); S.I. 2000/344, art. 2 Sch.

Modifications etc. (not altering text)

C32 S. 42(1) excluded (28.7.2000) by 2000 c. 17, s. 30, Sch. 6 Pt. II para. 19(10)(b)

Marginal Citations

M30 1968 c. 29

M31 1973 c. 41

M32 1974 c. 39

M33 1979 c. 38

M34 1980 c. 21

M35 1987 c. 43

M36 S.I. 1988/915.

M37 1989 c. 15

M38 1991 c. 56

M39 1989 c. 29

43 Making of false statements etc. E+W+S

(1) If any person, in giving any information or making any application for the purposes of any provision of this Part, or of any regulation made under any provision of this Part, makes any statement which he knows to be false in a material particular, or recklessly makes any statement which is false in a material particular, he shall be guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

[F249 (1A) Any person who with intent to deceive—

(a) impersonates an officer of a public gas transporter, gas supplier or gas shipper for the purpose of obtaining entry to any premises; or

(b) for that purpose makes any statement or does any act calculated falsely to suggest that he is an officer, or an authorised officer, of such a transporter, supplier or shipper,

shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.]

(2) Proceedings for an offence under subsection (1) above shall not in England and Wales be instituted except by or with the consent of the Secretary of State or the Director of Public Prosecutions.

Textual Amendments

F249 S. 43(1A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 51; S.I. 1996/218, art. 2

44 Compensation to chairmen and officers of Consumers’ Councils. E+W+S

(1) The Secretary of State may pay—

(a) to the person who immediately before the appointed day is the chairman of the National Gas Consumers’ Council; and

(b) to the persons who immediately before that day are the chairmen of the Regional Gas Consumers’ Councils,

such sums by way of compensation for loss of office or loss or diminution of pension rights as the Secretary of State may with the approval of the Treasury determine.

(2) The Secretary of State may also pay to persons who immediately before the appointed day were officers of any of the Councils mentioned in subsection (1) above such sums by way of compensation for loss of employment, or loss or diminution of remuneration or pension rights, as the Secretary of State may with the approval of the Treasury determine.

(3) Any sums required by the Secretary of State for the purposes of this section shall be paid out of money provided by Parliament.

Supplemental E+W+S

45 Offences by bodies corporate. E+W+S

(1) Where a body corporate is guilty of an offence under this Part and that offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(2) Where the affairs of a body corporate are managed by its members, subsection (1) above shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

46 Service of notices etc. E+W+S

(1) F250 . . .Any notice or other document required or authorised to be given, delivered or served under this Part or regulations made under this Part may be given, delivered or served either—

(a) by delivering it to the person to whom it is to be given or delivered or on whom it is to be served;

(b) by leaving it at the usual or last known place of abode of that person;

(c) by sending it in a prepaid letter addressed to that person at his usual or last known place of abode;

(d) in the case of a body corporate, by delivering it to the secretary or clerk of the body at their registered or principal office, or sending it in a prepaid letter addressed to the secretary or clerk of the body at that office; or

(e) if it is not practicable after reasonable inquiry to ascertain the name or address of a person to whom it should be given or delivered, or on whom it should be served, as being a person having any interest in premises, by addressing it to him by the description of the person having that interest in the premises (naming them) to which it relates and delivering it to some responsible person on the premises, or affixing it or a copy of it to some conspicuous part of the premises.

[F251 (2) Without prejudice to subsection (1) above, where this subsection applies in relation to a public gas transporter or gas supplier, any notice to be given to or served on the transporter or supplier under—

(a) any condition of his licence;

(b) any provision of Schedule 2B to this Act; or

(c) in the case of a transporter, section 10 above,

may be given or served by delivering it at, or sending it in a prepaid letter to, an appropriate office of the transporter or supplier.

(3) Subsection (2) above applies in relation to a public gas transporter if he divides his authorised area into such areas as he thinks fit and—

(a) in the case of each area, fixes offices of his which are to be appropriate offices in relation to notices relating to matters arising in that area; and

(b) publishes in each area, in such manner as he considers adequate, the addresses of the offices fixed by him for that area.

(4) Subsection (2) above applies in relation to a gas supplier if he divides the premises specified in his licence into such areas as he thinks fit and—

(a) in the case of each area, fixes offices of his which are to be appropriate offices in relation to notices relating to matters arising in that area;

(b) publishes in each area, in such manner as he considers adequate, the addresses of the offices fixed by him for that area; and

(c) endorses on every demand note for gas charges payable to him the addresses of the offices fixed for the area in question.

(5) In this section references to premises specified in a licence include references to premises of a description, or situated in an area, so specified.]

Textual Amendments

F250 Words in s. 46(1) repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 52(1), Sch. 6; S.I. 1996/218, art. 2

F251 S. 46(2)-(5) substituted for s. 46(2)(3) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 52(2); S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C33 S. 46 applied (29.9.2000) by 2000 c. 27, s. 106(4); S.I. 2000/2412, art. 2, Sch. (subject to transitional provisions in art. 3(2))

47 Provisions as to regulations. E+W+S

(1) Regulations made under any provision of this Part may provide for the determination of questions of fact or of law which may arise in giving effect to the regulations and for regulating (otherwise than in relation to any court proceedings) any matters relating to the practice and procedure to be followed in connection with the determination of such questions, including provision—

(a) as to the mode of proof of any matter;

(b) as to parties and their representation;

(c) for the right to appear [F252 before and be heard by] the Secretary of State, the Director and other authorities; and

(d) as to awarding costs [F253 or expenses] of proceedings for the determination of such questions, determining the amount thereof and the enforcement of awards thereof.

(2) Regulations made under any provision of this Part which prescribe a period within which things are to be done may provide for extending the period so prescribed.

(3) Regulations made under any provision of this Part may—

[F254 (aa) provide for anything falling to be determined under the regulations to be determined—

(i) by the Director or by such other person as may be prescribed by the regulations; and

(ii) in accordance with such procedure and by reference to such matters and to the opinion of such persons as may be so prescribed;]

(a) make different provision for different areas or in relation to different cases or different circumstances; and

(b) provide for such exceptions, limitations and conditions, and make such supplementary, incidental or transitional provision, as the Secretary of State [F255 or, as the case may be, the Director] considers necessary or expedient.

(4) Regulations made under any provision of this Part may provide that any person contravening the regulations shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

[F256 (5) Proceedings for an offence under any regulations made under any provision of this Part shall not in England and Wales be instituted except by or with the consent of the Secretary of State [F257 , the Director]] or the Director of Public Prosecutions.

(6) In any proceedings against any person for an offence under any regulations made under any provision of this Part, it shall be a defence for that person to show—

(a) that he was prevented from complying with the regulations by circumstances not within his control; or

(b) that circumstances existed by reason of which compliance with the regulations would or might have involved danger to the public and that he took all such steps as it was reasonable for him to take both to prevent the circumstances from occurring and to prevent them from having that effect.

[F258 (7) Any power to make regulations conferred by this Part on the Secretary of State or the Authority shall be exercisable by statutory instrument.

(8) Any statutory instrument containing regulations under this Part made by the Secretary of State shall, except as otherwise provided by this Act, be subject to annulment in pursuance of a resolution of either House of Parliament.]

Textual Amendments

F252 Words in s. 47(1)(c) substituted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 56(6), Sch. 1 para. 9(2)(a); Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F253 Words in s. 47(1)(d) inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 56(6), Sch. 1 para. 9(2)(b); Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F254 S. 47(3)(aa) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 53(1)(a); S.I. 1996/218, art. 2

F255 Words in s. 47(3)(b) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 53(1)(b); S.I. 1996/218, art. 2

F256 S. 47(5) repealed (1.3.1996) so far as relating to proceedings for offences created by regulations made or having effect under section 16 of this Act so far as relating to standards affecting safety by Offshore Safety Act 1992 (c. 15), s. 3(3)(b), Sch. 2; S.I. 1996/487, art. 2

F257 Words in s. 47(5) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 53(2); S.I. 1996/218, art. 2

F258 S. 47(7)(8) substituted (20.12.2000) for sub (7) by 2000 c. 27, s. 100; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

Modifications etc. (not altering text)

C34 Power to repeal or modify s. 47(3)(4) conferred by Health and Safety at Work etc. Act 1974 (c. 37), s. 15 (as amended (1.3.1996) by Offshore Safety Act 1992 (c. 15), s. 2(3)(b); S.I. 1996/487, art. 2)

48 Interpretation of Part I and savings. E+W+S

(1) In this Part, unless the context otherwise requires—

• “authorised area”, in relation to a public gas [F259 transporter], has the meaning given by section 7(2) above;

• [F260 “authorised supplier” means a person authorised by a licence or exemption to supply to any premises gas which has been conveyed to those premises through pipes;]

• “calorific value” has the meaning given by section 12(2) above;

• “the Council” means the Gas Consumers’ Council;

• “declared calorific value” has the meaning given by section 12(2) above;

• “distribution main”, in relation to a public gas [F261 transporter], means any main of the [F261 transporter] through which the [F261 transporter] is for the time being distributing gas and which is not being used only for the purpose of conveying gas in bulk;

• [F262 “domestic customer” has the meaning given by section 15A(10) above;]

• “gas” means—

(a) any substance in a gaseous state which consists wholly or mainly of—

(i) methane, ethane, propane, butane, hydrogen or carbon monoxide;

(ii) a mixture of two or more of those gases; or

(iii) a combustible mixture of one or more of those gases and air; and

(b) any other substance in a gaseous state which is gaseous at a temperature of 15°C and a pressure of 1013·25 millibars and is specified in an order made by the Secretary of State;

• “gas fittings” means gas pipes and meters, and fittings, apparatus and appliances designed for use by consumers of gas for heating, lighting, motive power and other purposes for which gas can be used;

• [F263 “gas supplier” and “gas shipper” have the meanings given by section 7A(11) above;]

• “holding company” [F264 has the meaning given by section 736 of] the M40 Companies Act 1985;

• “information” includes accounts, estimates and returns;

[F265 “ kilowatt hour” means 3.6 megajoules;]

• [F266 “licence” and “licence holder” have the meanings given by section 4(5) above;]

• “” F267 . . .

• “notice” means notice in writing;

• [F268 “officer”, in relation to any person, includes any servant or agent of that person, and any officer or servant of such an agent;

• “owner”, in relation to any premises or other property, includes a lessee, and cognate expressions shall be construed accordingly;]

• “prescribed” means prescribed by regulations [F269 made, unless the context otherwise requires, by the Secretary of State];

• [F270 “public gas transporter” has the meaning given by section 7(1) above;]

• F271 . . .

• [F272 “service pipe” means a pipe, other than a distribution main of a public gas transporter, which is used for the purpose of conveying gas from such a main to any premises, and includes part of any such pipe;

• “storage”, in relation to gas, means storage in, or in a facility which is connected (directly or indirectly) to, a pipe-line system operated by a public gas transporter;]

• “subsidiary” [F264 has the meaning given by section 736 of] the Companies Act 1985;

• F273 . . .

• F274 “”. . .

[F275 (1A) In this Part any reference to an officer authorised by any person includes, in relation to an officer who is an officer or servant of an agent of that person, an officer who, in accordance with the terms of any written authority given by that person to the agent, is authorised by the agent on behalf of that person.]

(2) In this Part, except in section 18, references to the supply of gas do not include references [F276 to the supply of gas (directly or indirectly) to a public gas transporter, gas supplier or gas shipper].

[F277 (2A) In relation to any time after 31st December 1999—

(a) references in this Part to 2,500, 75,000 and 2 million therms shall be construed as references to 73,200, 2,196,000 and 58 million kilowatt hours respectively; and

(b) other references in this Part to therms, and references in this Part to therms or kilowatt hours, shall be construed as references to kilowatt hours.

(2B) A person is of pensionable age for the purposes of this Part if—

(a) he has attained pensionable age (within the meaning given by the rules in paragraph 1 of Schedule 4 to the M41 Pensions Act 1995); or

(b) in the case of a man born before 6th April 1955, he is the same age as a woman who has attained pensionable age (within the meaning so given).

(3) Nothing in this Part relating to the modification of a licence shall authorise the inclusion in a licence of any condition other than one such as is mentioned in section 7B above or, in the case of a modification under section 27 above, as would be so mentioned if the references to the Director in subsection (4)(a), (b) and (d) of section 7B were references to the Secretary of State.]

(4) Nothing in this Part and nothing done under it shall prejudice or affect the operation of any of the relevant statutory provisions (whenever made) as defined in Part I of the M42 Health and Safety at Work etc. Act 1974.

Textual Amendments

F259 Word in s. 48(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(1)(a); S.I. 1996/218, art. 2

F260 Definition of

“authorised supplier”

in s. 48(1) inserted (7.11.2000 for certain purposes and otherwiseprosp.) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 19(a); S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

F261 Words in s. 48(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(1)(b); S.I. 1996/218, art. 2

F262 Words in s. 48(1) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(1)(c); S.I. 1996/218, art. 2

F263 Words in s. 48(1) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(1)(d); S.I. 1996/218, art. 2

F264 Words substituted by Companies Act 1989 (c. 40, SIF 27), s. 144(4), Sch. 18 para. 44(a) (subject to the transitional provisions referred to in S.I. 1990/1392 art. 2(d))

F265 Definition in s. 48(1) inserted (1.4.1992) by S.I. 1992/450, reg. 3(2).

F266 Words in s. 48(1) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(1)(e); S.I. 1996/218, art. 2

F267 Words in s. 48(1) repealed (1.4.1999) by S.I. 1999/506, art. 20(d)

F268 Words in s. 48(1) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(1)(f); S.I. 1996/218, art. 2

F269 Words in s. 48(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(1)(g); S.I. 1996/218, art. 2

F270 Words in s. 48(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(1)(h); S.I. 1996/218, art. 2

F271 Words in s. 48(1) repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 54(1)(i), Sch. 6; S.I. 1996/218, art. 2

F272 Words in s. 48(1) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(1)(j); S.I. 1996/218, art. 2

F273 Words in s. 48(1) repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 54(1)(k), Sch. 6; S.I. 1996/218, art. 2

F274 Definition of "therm" in s. 48(1) omitted (1.1.2000) by virtue of S.I. 1992/450, reg. 3(5)(e).

F275 S. 48(1A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(2); S.I. 1996/218, art. 2

F276 Words in s. 48(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(3); S.I. 1996/218, art. 2

F277 S. 48(2A)-(3) substituted for s. 48(3) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 54(4); S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C35 S. 48(1) amended (temp. until 31.12.1999) (1.4.1992) by S.I. 1992/450, reg. 3(4)(b).

Marginal Citations

M40 1985 c. 6.

M41 1995 c.26.

M42 1974 c. 37.

Part II U.K. Transfer of Undertaking of Corporation

Modifications etc. (not altering text)

C36 Pt. II (ss. 49-61) extended (15.12.2001) by S.I. 2001/4011, art. 12(1)(b)

49 Vesting of property etc. of Corporation in a company nominated by the Secretary of State. U.K.

(1) On such day as the Secretary of State may by order appoint for the purposes of this section (in this Act referred to as “the transfer date ”), all the property, rights and liabilities to which the Corporation was entitled or subject immediately before that date shall (subject to section 50 below) become by virtue of this section property, rights and liabilities of a company nominated for the purposes of this section by the Secretary of State (in this Act referred to as “the successor company ”).

(2) The Secretary of State may, after consulting the Corporation, by order nominate for the purposes of this section any company formed and registered under the M43 Companies Act 1985; but on the transfer date the company in question must be a company limited by shares which is wholly owned by the Crown.

(3) References in this Act to property, rights and liabilities of the Corporation are references to all such property, rights and liabilities, whether or not capable or not capable of being transferred or assigned by the Corporation.

(4) It is hereby declared for the avoidance of doubt that—

(a) any reference in this Act to property of the Corporation is a reference to property of the Corporation, whether situated in the United Kingdom or elsewhere; and

(b) any such reference to rights and liabilities of the Corporation is a reference to rights to which the Corporation is entitled, or (as the case may be) liabilities to which the Corporation is subject, whether under the law of the United Kingdom or of any part of the United Kingdom or under the law of any country or territory outside the United Kingdom.

(5) In the M44 House of Commons Disqualification Act 1975 in Part III of Schedule 1 (other disqualifying offices) there shall be inserted (at the appropriate place) the following entry—

“Director of the successor company (within the meaning of the Gas Act 1986), being a director nominated or appointed by a Minister of the Crown or by a person acting on behalf of the Crown ”;

and the like insertion shall be made in Part III of Schedule 1 to the M45 Northern Ireland Assembly Disqualification Act 1975.

Modifications etc. (not altering text)

C37 24.8.1986 appointed for the purposes of section 49(1) by S.I. 1986/1318

Marginal Citations

M43 1985 c. 6.

M44 1975 c. 24.

M45 1975 c. 25.

50 British Gas Stock. U.K.

(1) On the transfer date all the rights and liabilities to which the Corporation was entitled or subject immediately before that date under the terms of issue of British Gas Stock shall become by virtue of this section rights and liabilities of the Treasury.

(2) As from the transfer date British Gas Stock shall be deemed for all purposes, but subject to the rights and liabilities mentioned in subsection (1) above, to have been created and issued under the M46 National Loans Act 1968, and that Act and any other enactment, regulation or rule relating to securities issued under that Act shall apply accordingly to that Stock.

(3) As from the transfer date British Gas 3% Guaranteed Stock, 1990-95 shall be renamed “3% Exchequer Gas Stock, 1990-95 ”.

(4) Before the transfer date the Corporation shall pay to the Treasury an amount equal to the interest (without any deduction for income tax) accruing on British Gas Stock in the period from the date when the last instalment of interest became payable on the Stock down to the transfer date.

(5) Any question arising between the Corporation and the Treasury as to the manner in which interest accrued on British Gas Stock is to be calculated for the purposes of subsection (4) above shall be determined by the Treasury; and the amount received by the Treasury under that subsection shall be paid into the National Loans Fund.

(6) Before the transfer date the Corporation shall pay to the Bank of England a sum equal to the amounts accruing in respect of unclaimed interest or redemption money on British Gas Stock before the transfer date (after deduction of income tax in the case of interest), but excluding any amounts represented by money in the hands of the Bank of England.

(7) The Bank of England shall deal with—

(a) the money paid to them under subsection (6) above; and

(b) the money already in their hands which represents such unclaimed interest or redemption money as is mentioned in that subsection,

as money entrusted to them for payment to holders of British Gas Stock and section 5 of the M47 Miscellaneous Financial Provisions Act 1955 (which relates to unclaimed dividends etc. on Government Stock) shall apply accordingly.

(8) In this section “British Gas Stock ” means any stock created and issued under section 21 of the 1972 Act or section 43 of the M48 Gas Act 1948.

Marginal Citations

M46 1968 c. 13.

M47 1955 c. 6. (4 & 5 Eliz. 2.)

M48 1948 c. 67.

51 Initial Government holding in the successor company. E+W+S

(1) As a consequence of the vesting in the successor company by virtue of section 49 above of property, rights and liabilities of the Corporation, the successor company shall issue such securities of the company as the Secretary of State may from time to time direct—

(a) to the Treasury or the Secretary of State; or

(b) to any person entitled to require the issue of the securities following their initial allotment to the Treasury or the Secretary of State.

(2) The Secretary of State shall not give a direction under subsection (1) above at a time when the successor company has ceased to be wholly owned by the Crown.

(3) Securities required to be issued in pursuance of this section shall be issued or allotted at such time or times and on such terms as the Secretary of State may direct.

(4) Shares issued in pursuance of this section—

(a) shall be of such nominal value as the Secretary of State may direct; and

(b) shall be issued as fully paid and treated for the purposes of the M49 Companies Act 1985 as if they had been paid up by virtue of the payment to the successor company of their nominal value in cash.

(5) The Secretary of State shall not exercise any power conferred on him by this section, or dispose of any securities issued or of any rights to securities initially allotted to him in pursuance of this section, without the consent of the Treasury.

(6) Any dividends or other sums received by the Treasury or the Secretary of State in right of or on the disposal of any securities or rights acquired by virtue of this section shall be paid into the Consolidated Fund.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F278

Textual Amendments

F278 Ss. 51(7), 52(5) repealed by Finance Act 1988 (c. 39, SIF 114), s. 148, Sch. 14 Pt. XI

Marginal Citations

M49 1985 c. 6.

52 Government investment in securities of the successor company. E+W+S

(1) The Treasury or, with the consent of the Treasury, the Secretary of State may at any time acquire—

(a) securities of the successor company; or

(b) rights to subscribe for any such securities.

(2) The Secretary of State may not dispose of any securities or rights acquired under this section without the consent of the Treasury.

(3) Any expenses incurred by the Treasury or the Secretary of State in consequence of the provisions of this section shall be paid out of money provided by Parliament.

(4) Any dividends or other sums received by the Treasury or the Secretary of State in right of, or on the disposal of, any securities or rights acquired under this section shall be paid into the Consolidated Fund.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F279

Textual Amendments

F279 Ss. 51(7), 52(5) repealed by Finance Act 1988 (c. 39, SIF 114), s. 148, Sch. 14 Pt. XI

53 Exercise of functions through nominees. E+W+S

(1) The Treasury or, with the consent of the Treasury, the Secretary of State may for the purposes of section 51 or 52 above appoint any person to act as the nominee, or one of the nominees, of the Treasury or the Secretary of State; and—

(a) securities of the successor company may be issued under section 51 above to any nominee of the Treasury or the Secretary of State appointed for the purposes of that section or to any person entitled to require the issue of the securities following their initial allotment to any such nominee; and

(b) any such nominee appointed for the purposes of section 52 above may acquire securities or rights under that section,

in accordance with directions given from time to time by the Treasury or, with the consent of the Treasury, by the Secretary of State.

(2) Any person holding any securities or rights as a nominee of the Treasury or the Secretary of State by virtue of subsection (1) above shall hold and deal with them (or any of them) on such terms and in such manner as the Treasury or, with the consent of the Treasury, the Secretary of State may direct.

54 Target investment limit for Government shareholding. E+W+S

(1) As soon as he considers expedient and, in any case, not later than six months after the successor company ceases to be wholly owned by the Crown, the Secretary of State shall by order fix a target investment limit in relation to the shares for the time being held in that company by virtue of any provision of this Part by the Treasury and their nominees and by the Secretary of State and his nominees (in this section referred to as “the Government shareholding ”).

(2) The target investment limit shall be expressed as a proportion of the voting rights which are exercisable in all circumstances at general meetings of the successor company (in this section referred to as “the ordinary voting rights ”).

(3) The first target investment limit fixed under this section shall be equal to the proportion of the ordinary voting rights which is carried by the Government shareholding at the time when the order fixing the limit is made.

(4) The Secretary of State may from time to time by order fix a new target investment limit in place of the one previously in force under this section; but—

(a) any new limit must be lower than the one it replaces; and

(b) an order under this section may only be revoked by an order fixing a new limit.

(5) It shall be the duty of the Treasury and of the Secretary of State so to exercise—

(a) their powers under section 52 above and any power to dispose of any shares held by virtue of any provision of this Part; and

(b) their power to give directions to their respective nominees,

as to secure that the Government shareholding does not carry a proportion of the ordinary voting rights exceeding any target investment limit for the time being in force under this section.

(6) Notwithstanding subsection (5) above, the Treasury or the Secretary of State may take up, or direct any nominee of the Treasury or of the Secretary of State to take up, any rights for the time being available to them or him, or to that nominee, as an existing holder of shares or other securities of the successor company; but if, as a result, the proportion of the ordinary voting rights carried by the Government shareholding at any time exceeds the target investment limit, it shall be the duty of the Treasury or, as the case may be, the Secretary of State to comply with subsection (5) above as soon after that time as is reasonably practicable.

(7) For the purposes of this section the temporary suspension of any of the ordinary voting rights shall be disregarded.

55 Financial structure of the successor company. E+W+S

(1) If the Secretary of State so directs at any time before the successor company ceases to be wholly owned by the Crown, such sum (not exceeding the accumulated realised profits of the Corporation) as may be specified in the direction shall be carried by the successor company to a reserve (in this section referred to as “the statutory reverse ”).

(2) The statutory reserve may only be applied by the successor company in paying up unissued shares of the company to be allotted to members of the company as fully paid bonus shares.

(3) Notwithstanding subsection (2) above, the statutory reserve shall not count as an undistributable reserve of the successor company for the purposes of section 264(3)(d) of the M50 Companies Act 1985; but for the purpose of determining under that section whether the successor company may make a distribution at any time any amount for the time being standing to the credit of the statutory reserve shall be treated for the purposes of section 264(3)(c) as if it were unrealised profits of the company.

(4) For the purposes of any statutory accounts of the successor company—

(a) the vesting effected by virtue of section 49 above shall be taken to have been a vesting of all the property, rights and liabilities to which the Corporation was entitled or subject immediately before the end of the last complete financial year of the Corporation ending before the transfer date (other than any rights and liabilities which vest in the Treasury by virtue of section 50 above) and to have been effected immediately after the end of that year; and

(b) the value of any asset and the amount of any liability of the Corporation taken to have been vested in the successor company by virtue of paragraph (a) above shall be taken to have been the value or (as the case may be) the amount assigned to that asset or liability for the purposes of the corresponding statement of accounts prepared by the Corporation in respect of that year.

(5) For the purposes of any statutory accounts of the successor company the amount to be included in respect of any item shall be determined as if anything done by the Corporation (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by the successor company.

Accordingly (but without prejudice to the generality of the preceding provision) the amount to be included from time to time in any reserves of the successor company as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Corporation had been realised and retained by the successor company.

(6) References in this section to the statutory accounts of the successor company are references to any accounts prepared by the successor company for the purposes of any provision of the M51 Companies Act 1985 (including group accounts); and in this section “complete financial year ” means a financial year ending with 31st March.

Marginal Citations

M50 1985 c. 6.

M51 1985 c. 6.

56 Temporary restrictions on successor company’s borrowings etc. E+W+S

(1) If articles of association of the successor company confer on the Secretary of State powers exercisable with the consent of the Treasury for, or in connection with, restricting the sums of money which may be borrowed or raised by the group during any period, those powers shall be exercisable in the national interest notwithstanding any rule of law and the provisions of any enactment.

(2) For the purposes of this section any alteration of the articles of association of the successor company which—

(a) has the effect of conferring or extending any such power as is mentioned in subsection (1) above; and

(b) is made at a time when that company has ceased to be wholly owned by the Crown,

shall be disregarded.

(3) In this section “group ” means the successor company and all of its subsidiaries taken together.

57 Dissolution of the Corporation. E+W+S

(1) The Corporation shall continue in existence after the transfer date until it is dissolved in accordance with subsection (2) below; and the period of its continued existence after the transfer date is in this Act referred to as “the transitional period ”.

(2) The Secretary of State may by order, after consulting the Corporation and the successor company, dissolve the Corporation on a day specified in the order, as soon as he is satisfied that nothing further remains to be done by the Corporation under Schedule 8 to this Act.

(3) During the transitional period section 1 of the 1972 Act shall have effect as if for subsection (2) (composition of Corporation) there were substituted the following subsection—

“(2) The Corporation shall consist of—

(a) a chairman appointed by the Secretary of State; and

(b) such one or more other persons as may be so appointed.”

Modifications etc. (not altering text)

C38 By S.I. 1990/147 art. 2 the British Gas Corporation was dissolved on 28.2.1990

58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F280 U.K.

Textual Amendments

F280 S. 58 repealed by Financial Services Act 1986 (c. 60, SIF 69), s. 212(3), Sch. 17 Pt. I

59 Application of Trustee Investments Act 1961 in relation to investment in the successor company. E+W+S

(1) For the purpose of applying paragraph 3(b) of Part IV of Schedule 1 to the M52 Trustee Investments Act 1961 (which provides that shares and debentures of a company shall not count as wider-range and narrower-range investments respectively within the meaning of that Act unless the company has paid dividends in each of the five years immediately preceding that in which the investment is made) in relation to investment in shares or debentures of the successor company during the calendar year in which the transfer date falls ( “the first investment year ”) or during any year following that year, the successor company shall be deemed to have paid a dividend as there mentioned—

(a) in every year preceding the first investment year which is included in the relevant five years; and

(b) in the first investment year, if that year is included in the relevant five years and the successor company does not in fact pay such a dividend in that year.

(2) In subsection (1) above “the relevant five years ” means the five years immediately preceding the year in which the investment in question is made or proposed to be made.

Marginal Citations

M52 1961 c. 62.

60 Tax provisions. E+W+S

(1) The successor company shall be treated—

(a) for all purposes of corporation tax and petroleum revenue tax; 165, Sch. 27 F281 . . .

F281 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

as if it were the same person as the Corporation.

(2) The successor company shall not by virtue of subsection (1) above be regarded as a body falling within section [F282 170(12) of the Taxation of Chargeable Gains Act 1992] (bodies established for carrying on industries or undertakings under national ownership or control).

[F283 (3) For the purposes of Part VI of the M53 Income and Corporation Taxes Act 1988 (company distributions) and Chapter II of Part IV of the Finance Act 1996 (loan relationships), any debentures issued in pursuance of section 51 above shall be treated as having been issued for new consideration equal to the principal sum payable under the debenture.]

F284 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F281 S. 60(1)(b) and word preceding it repealed (31.7.1998 but without effect in relation to gas levy for the year 1997-98 or any previous year) by 1998 c. 36, s. 165, Sch. 27 Pt. V(3) Note 1

F282 Words in s. 60(2) substituted (6.3.1992 with effect as mentioned in s. 289(1) of the 1992 substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289(1)(2), 290, Sch. 10 para. 13 (with ss. 60, 101(1), 201(3)).

F283 S. 60(3) substituted (29.4.1996) by 1996 c. 8, s. 104, Sch. 14 para. 4 (with ss. 80-105)

F284 S. 60(4) repealed (31.7.1998 but without effect in relation to gas levy for the year 1997-98 or any previous year) by 1998 c. 36, s. 165, Sch. 27 Pt. V(3) Note 1

Marginal Citations

M53 1988 c. 1.

61 Interpretation etc. of Part II. E+W+S

(1) In this Part—

• “debenture ” includes debenture stock;

• “securities ”, in relation to a company, includes shares, debentures, bonds and other securities of the company, whether or not constituting a charge on the assets of the company;

• “shares ” includes stock;

• “subsidiary ” [F285 has the meaning given by section 736 of] the M54 Companies Act 1985.

(2) An order under section 49 above nominating any company for the purposes of that section and an order under subsection (1) of that section appointing the transfer date may be varied or revoked by a subsequent order at any time before any property, rights or liabilities vest in any company by virtue of section 49 above.

(3) A company shall be regarded for the purposes of this Part as wholly owned by the Crown at any time when each of the issued shares in the company is held by, or by a nominee of, the Treasury or the Secretary of State.

Textual Amendments

F285 Words substituted by Companies Act 1989 (c. 40, SIF 27), s. 144(4), Sch. 18 para. 44(b) (subject to the transitional provisions referred to in S.I. 1990/1392, art. 2(d))

Marginal Citations

M54 1985 c. 6.

Part III U.K. Miscellaneous and General

62 Exclusion of certain agreements from Restrictive Trade Practices Act 1976. U.K.

(1) The M55 Restrictive Trade Practices Act 1976 shall not apply, and that Act and the M56 Restrictive Trade Practices Act 1956 shall be deemed never to have applied, to any agreement which—

(a) was made before 28th November 1985; and

(b) was an agreement containing provisions relating to, or to activities connected with, the supply at a relevant place or to the Corporation of gas won under the authority of a petroleum production licence.

(2) The said Act of 1976 shall not apply, and shall be deemed never to have applied, to any agreement which—

(a) is or was made on or after 28th November 1985;

[F286 (b) is or was an agreement containing provisions relating to, or to activities connected with, the supply otherwise than under a licence granted under section 7A(1) above [F287 or Article 8(1)(c) of the Gas (Northern Ireland) Order 1996]of gas won under the authority of a petroleum production licence;]

(c) satisfies such other conditions as may be specified in an order made by the Secretary of State.

[F288 (2A) The said Act of 1976 shall not apply, and shall be deemed never to have applied, to any agreement which—

(a) is or was made on or after 2nd March 1995;

(b) is or was an agreement containing provisions relating to, or to activities connected with—

(i) the introduction of gas into;

(ii) the taking out of gas from; or

(iii) the use by gas shippers of,

a pipe-line system or storage facility operated by a publicgas transporter; and

(c) is specified, or is of a description specified, in an order made by the Secretary of State and satisfies such conditions as may be so specified.

(2B) Before making an order under subsection (2) or (2A) above, the Secretary of State shall consult the Director and the Director General of Fair Trading.]

(3) The conditions specified in an order under subsection (2) [F289 or (2A)]above may include—

(a) conditions which are to be satisfied in relation to a time before the coming into force of this section;

(b) conditions which refer any matter (which may be the general question whether the said Act of 1976 should apply to a particular agreement) to the Secretary of State [F290 , the Director or the Director General of Fair Trading] for determination after such consultation as may be so specified.

(4) Any modification on or after 28th November 1985 of any agreement made before that date shall—

(a) if it relates exclusively to the identities of the parties to the agreement, be treated for the purposes of this section and the said Act of 1976 as a modification before that date; and

(b) in any other case, be treated for those purposes in relation to the original agreement as a separate agreement;

and, accordingly, in neither case shall the modification be capable of having the effect of requiring an agreement made before that date to be treated for those purposes as an agreement made on or after that date.

(5) For the purposes of this section, the following in particular, that is to say, exploration for gas and the production, transport and treatment of gas shall be regarded as activities connected with the supply of gas.

(6) In this section—

• “gas ” means substance which is or (if it were in a gaseous state) would be gas within the meaning of Part I of this Act;

• [F291 “gas shipper ” and “public gas transporter ” have the same meanings as in Part I of this Act;]

• “petroleum production licence ” means a licence granted under the M57 Petroleum (Production) Act 1934 [F292 , Part I of the Petroleum Act 1998]or the M58 Petroleum (Production) Act (Northern Ireland) 1964 or any corresponding licence granted under the law of a country or territory outside the United Kingdom;

• “relevant place ”, in relation to any gas won under the authority of a petroleum production licence, means—

(a) in the case of gas won at a place in the United Kingdom, that place or any place within one mile from that place;

(b) in the case of gas won at a place outside the United Kingdom and landed at a place in the United Kingdom, any place outside the United Kingdom, the place of landing or any place within one mile from the place of landing;

and expressions which are also used in the said Act of 1976 have the same meanings as in that Act.

F293 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F286 S. 62(2)(b) substituted (8.11.1995) by 1995 c. 45, s. 11(1)

F287 Words in s. 62(2)(b) inserted (N.I.) (10.6.1996) by S.I. 1996/275 (N.I. 2), art. 71(1), Sch. 6; S.R. 1996/216, art. 2 (subject to transitional provisions in arts. 3, 4)

F288 S. 62(2A)(2B) inserted (8.11.1995) by 1995 c. 45, s. 11(2)

F289 Words in s. 62(3) inserted (8.11.1995) by 1995 c. 45, s. 11(3)(a)

F290 Words in s. 62(3) inserted (8.11.1995) by 1995 c. 45, s. 11(3)(b)

F291 Words in s. 62(6) inserted (8.11.1995) by 1995 c. 45, s. 11(4)

F292 Words in s. 62(6) inserted (15.2.1999) by 1998 c. 17, s. 50, Sch. 4 para. 22 (with Sch. 3 para. 51); S.I. 1999/161, art. 2(1)

F293 S. 62(7) repealed (8.11.1995) by 1995 c. 45, ss. 11(5), 17(5), Sch. 6

Modifications etc. (not altering text)

C39 S. 62(2) modified (8.11.1995 with effect as mentioned by Sch. 5 Pt. II para. 30(1) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 30(1); S.I. 1996/218, art. 2

C40 S. 62(2A) modified (8.11.1995 with effect as mentioned by Sch. 5 Pt. II para. 30(2) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 30(2); S.I. 1996/218, art. 2

Marginal Citations

M55 1976 c. 34.

M56 1956 c. 68.

M57 1934 c. 36.

M58 1964 c. 28.(N.I.).

F294 63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F294 S. 63 repealed (1.3.1996) by 1995 c. 45, ss. 11(6), 17(5), Sch. 6 (with Sch. 5 Pt. II para. 23); S.I. 1996/218, art. 2

64 Provisions as to orders. E+W+S

(1) Any power conferred on the Secretary of State by this Act to make orders shall be exercisable by statutory instrument.

(2) Any statutory instrument containing an order under this Act, other than an order appointing a day or an order under section F295 . . ., 49(2) or 57(2) above, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Textual Amendments

F295 Words in s. 64(2) repealed (1.3.1996) by 1995 c. 45, ss. 11(7), 17(5), Sch. 6; S.I. 1996/218, art. 2

65 Financial provisions. E+W+S

There shall be paid out of money provided by Parliament any administrative expenses incurred by the Secretary of State in consequence of the provisions of this Act and any increase attributable to this Act in the sums payable out of money so provided under any other Act.

66 General interpretation. U.K.

In this Act, unless the context otherwise requires—

• “the 1972 Act ” means the M59 Gas Act 1972;

• “the appointed day ” has the meaning given by section 3 above;

• [F296 “the Authority ” means the Gas and Electricity Markets Authority;]

• “contravention ”, in relation to any direction, condition, requirement, regulation or order, includes any failure to comply with it and cognate expressions shall be construed accordingly;

• “the Corporation ” means the British Gas Corporation;

• [F297 “the Council ” means the Gas and Electricity Consumer Council;]

• “ the Director ” means the Director General of Gas Supply;

• “modifications ” includes additions, alterations and omissions and cognate expressions shall be construed accordingly;

• “subordinate legislation ” has the same meaning as in the M60 Interpretation Act 1978;

• “the successor company ” has the meaning given by section 49(1) above;

• “the transfer date ” has the meaning given by section 49(1) above;

• “the transitional period ” has the meaning given by section 57(1) above.

Textual Amendments

F296 Definition of “the Authority ” in s. 66 inserted (20.12.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 22(a); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F297 Definition of “the Council ” in s. 66 inserted (7.11.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 22(b); S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

Marginal Citations

M59 1972 c. 60.

M60 1978 c. 30.

67 Amendments, transitional provisions, savings and repeals. U.K.

(1) The enactments mentioned in Schedule 7 to this Act shall have effect subject to the amendments there specified (being minor amendments or amendments consequential on the preceding provisions of this Act).

(2) The Secretary of State may by order make such consequential modifications of any provision contained in any Act (whether public general or local) passed, or in subordinate legislation made, before the appointed day as appear to him necessary or expedient in respect of—

(a) any reference in that Act or subordinate legislation to the Corporation;

(b) any reference (in whatever terms) in that Act or subordinate legislation to a person carrying on a gas undertaking or to such an undertaking; or

(c) any reference in that Act or subordinate legislation to any enactment repealed by this Act.

(3) The transitional provisions and savings contained in Schedule 8 to this Act shall have effect; but those provisions and savings are without prejudice to sections 16 and 17 of the M61 Interpretation Act 1978 (effect of repeals).

(4) The enactments mentioned in Schedule 9 to this Act (which include some which are spent or no longer of practical utility) are hereby repealed to the extent specified in the third column of that Schedule.

Marginal Citations

M61 1978 c. 30.

68 Short title, commencement and extent. E+W+S

(1) This Act may be cited as the Gas Act 1986.

(2) The following provisions of this Act, namely—

• Part I except sections 1 and 2;

• section 66;

• section 67(1) and Schedule 7;

• section 67(2);

• Part I of Schedule 8 and section 67(3) so far as relating to that Part; and

• Part I of Schedule 9 and section 67(4) so far as relating to that Part,

shall come into force on the appointed day.

(3) The following provisions of this Act, namely—

• Part II;

• Part II of Schedule 8 and section 67(3) so far as relating to that Part; and

• Part II of Schedule 9 and section 67(4) so far as relating to that Part,

shall come into force on the transfer date.

(4) Part III of Schedule 9 and section 67(4) so far as relating to that Part shall come into force on the dissolution of the Corporation.

(5) Subject to subsections (2) to (4) above, this Act shall come into force on such day as the Secretary of State may by order appoint; and different days may be so appointed for different provisions or for different purposes.

(6) This Act, except this section and the following provisions, namely—

• sections 49 and 50;

• section 58;

• sections 62 and 63;

• section 66;

• paragraph 7 of Schedule 1 and section 1(5) so far as relating to that paragraph;

• paragraph 8 of Schedule 2 and section 2(5) so far as relating to that paragraph;

• paragraphs 15, 23 and 28 of Schedule 7 and section 67(1) so far as relating to those paragraphs; and

• paragraph 27 to 31 of Schedule 8 and section 67(3) so far as relating to those paragraphs; and

• Schedule 9 and section 67(4) so far as relating to the repeal of section 33(2) of the 1972 Act and the repeals in the M62 House of Commons Disqualification Act 1975,

does not extend to Northern Ireland.

Modifications etc. (not altering text)

C41 Power of appointment conferred by s. 68(5) fully exercised: S.I. 1986/1315, 1809

Marginal Citations

M62 1975 c. 24.

SCHEDULES

Section 1(5).

SCHEDULE 1 U.K. Director General of Gas Supply

1 There shall be paid to the Director such remuneration, and such travelling and other allowances, as the Secretary of State with the approval of the Treasury may determine.

Modifications etc. (not altering text)

C42 Sch. 1 para. 1: functions of the Treasury transferred to the Minister for the Civil Service (1.4.1995) by S.I. 1995/269, art. 3, Sch.

2 In the case of any such holder of the office of the Director as may be determined by the Secretary of State with the approval of the Treasury, there shall be paid such pension, allowance or gratuity to or in respect of him on his retirement or death, or such contributions or payments towards provision for such a pension, allowance or gratuity as may be so determined.

Modifications etc. (not altering text)

C43 Sch. 1 para. 2: functions of the Treasury transferred to the Minister for the Civil Service (1.4.1995) by S.I. 1995/269, art. 3, Sch.

3 If, when any person ceases to hold office as the Director, the Secretary of State determines with the approval of the Treasury that there are special circumstances which make it right that he should receive compensation, there may be paid to him a sum by way of compensation of such amount as may be so determined.

Modifications etc. (not altering text)

C44 Sch. 1 para. 3: functions of the Treasury transferred to the Minister for the Civil Service (1.4.1995) by S.I. 1995/269, art. 3, Sch.

4 The Director may, with the approval of the Treasury as to numbers and terms and conditions of service, appoint such staff as he may determine.

5 There shall be paid out of money provided by Parliament the remuneration of, and any travelling or other allowances payable under this Act to, the Director and any staff of the Director, any sums payable under this Act to or in respect of the Director and any expenses duly incurred by the Director or by any of his staff in consequence of the provisions of this Act.

F298 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

6

Textual Amendments

F298 Sch. 1 para. 6 repealed by Parliamentary and Health Service Commissioners Act 1987 (c. 39, SIF 89), s. 10(2), Sch. 2

7 In the M63 House of Commons Disqualification Act 1975 in Part III of Schedule 1 (other disqualifying offices) there shall be inserted (at the appropriate place) the following entry—

“Director General of Gas Supply”;

and the like insertion shall be made in Part III of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975.

Marginal Citations

M63 1975 c. 24.

8 The Director shall have an official seal for the authentication of documents required for the purposes of his functions.

9 The Documentary Evidence Act 1868 shall have effect as if the Director were included in the first column of the Schedule to that Act, as if the Director and any person authorised to act on behalf of the Director were mentioned in the second column of that Schedule, and as if the regulations referred to in that Act included any document issued by the Director or by any such person.

10 Anything authorised or required by or under this Act to be done by the Director [F299 (other than the making of a statutory instrument)]may be done by any member of the staff of the Director who is authorised generally or specially in that behalf by the Director.

Textual Amendments

F299 Words in Sch. 1 para. 10 inserted (1.3.1996) by 1995 c. 45, s. 10(1), SCh. 3 para. 55; S.I. 1996/208, art. 2

10 Anything authorised or required by or under this Act to be done by the Director may be done by any member of the staff of the Director who is authorised generally or specially in that behalf by the Director.

F300 SCHEDULE 2 U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F300 Sch. 2 repealed (7.11.2000) by 2000 c. 27, s. 108, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

[F301 SCHEDULE 2A E+W+S Exceptions to prohibition on unlicensed activities

Textual Amendments

F301 Sch. 2A inserted (1.3.1996) by 1995 c. 45, s. 3(2), Sch. 1; S.I. 1996/218, art. 2

Conveyance or supply by landlords etc. E+W+S

1 E+W+S Section 5(1) of this Act is not contravened by a person—

(a) conveying within a building or part of a building in which he has an interest; or

(b) supplying for use in such a building or part of a building,

gas supplied to the building by a person authorised to supply it by or under section 6A or 7A of this Act or this Schedule.

Conveyance or supply to associated companies E+W+S

2 E+W+S Section 5(1) of this Act is not contravened by a company conveying or supplying gas to any premises occupied by a subsidiary or holding company of the company, or by a subsidiary of a holding company of the company.

Conveyance or supply of propane or butane E+W+S

3 (1) Section 5(1) of this Act is not contravened by a person conveying or supplying to any premises gas which consists wholly or mainly of propane or butane. E+W+S

(2) In the case of a supply, this paragraph does not apply unless—

(a) the contract for the supply contains provisions empowering a person authorised by the supplier to enter the premises where in his opinion it is necessary to do so for the purpose of averting danger to life or property;

(b) those provisions are in terms approved for the purposes of this paragraph by the Secretary of State; and

(c) the gas is conveyed to the premises otherwise than by a public gas transporter.

Modifications etc. (not altering text)

C45 Sch. 2A para. 3 extended (8.11.1995 with effect as mentioned by Sch. 5 Pt. II para. 13 of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 13; S.I. 1996/218, art. 2

Conveyance for supply to large consumers E+W+S

4 E+W+S Section 5(1) of this Act is not contravened by a person conveying gas to any premises at any time if they are supplied with gas at a rate which, at any time within the period of 12 months immediately preceding that time, he reasonably expected to exceed 75,000 therms a year.

Supply to very large consumers E+W+S

5 (1) Sub-paragraph (2) below applies where a person (in this paragraph referred to as a “supplier ”) notifies the Director— E+W+S

(a) that he proposes to undertake a supply of gas to any premises at a rate in excess of 2,000,000 therms a year (in this paragraph referred to as “the required rate ”); or

(b) that, in such circumstances as may be described in the notification, he would undertake a supply of gas to any premises, at a rate in excess of the required rate, for such period as may be so described.

(2) Section 5(1) of this Act is not contravened by a supply of gas to the premises (or, as the case may require, a supply of gas to the premises in the circumstances and for the period described in the notification) unless, within six weeks of receiving the notification, the Director notifies the supplier either—

(a) that he is of the opinion that the rate of supply to those premises would be unlikely to exceed the required rate; or

(b) that he is unable to form an opinion as to whether the rate of supply to those premises would or would not be likely to exceed the required rate.

(3) Where a supplier has given the Director a notification under sub-paragraph (1)(a) above and—

(a) the rate of supply to the premises to which the notification relates fails to exceed the required rate for three successive periods of twelve months;

(b) the supplier fails to furnish the Director with such information as he may require for the purpose of determining whether the condition in paragraph (a) above is fulfilled; or

(c) the supplier fails to afford to the Director such facilities as he may require for the purpose of verifying any information furnished in pursuance of such a requirement as is mentioned in paragraph (b) above,

the Director may direct that the supplier’s notification shall be treated as invalid for the purposes of that sub-paragraph except as regards gas previously supplied.

(4) As soon as practicable after receiving a notification under sub-paragraph (1) above, giving a notification under sub-paragraph (2) above or giving a direction under sub-paragraph (3) above, the Director shall send a copy of the notification or direction to the Health and Safety Executive.]

Modifications etc. (not altering text)

C46 Sch. 2A para. 5(1) extended (8.11.1995 with effect as mentioned by Sch. 5 Pt. II para. 14(1) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 14(2); S.I. 1996/218, art. 2

[F302 SCHEDULE 2B E+W+S The gas code]

Textual Amendments

F302 Sch. 2B inserted (1.3.1996) by 1995 c. 45, s. 9(2), Sch. 2; S.I. 1996/218, art. 2

[F303 Preliminary E+W+S

Textual Amendments

F303 Sch. 2B inserted (1.3.1996) by 1995 c. 45, s. 9(2), Sch. 2; S.I. 1996/218, art. 2

1 (1) In this Schedule, unless the context otherwise requires—

• “the appointed day ” means the day appointed under section 18(2) of the Gas Act 1995;

• “connect ”, in relation to any premises, means connect to a main of a public gas transporter, whether directly or by means of a service pipe, and “disconnect ” and “re-connect ” have corresponding meanings except that they also include discontinuing or, as the case may be, resuming the conveyance of gas to the premises;

• “consumer ” means a person who is supplied with gas conveyed to particular premises (in this Schedule referred to as his premises) by a public gas transporter;

• “relevant gas supplier ” and “relevant gas shipper ”, in relation to a consumer, mean respectively any gas supplier who is supplying him with gas conveyed to his premises and any gas shipper who has made arrangements in pursuance of which gas is conveyed to those premises.

(2) In so far as the provisions of this Schedule, other than paragraphs 20 to 22 below, apply in relation to a public gas transporter, gas supplier or gas shipper, they shall have effect subject to any conditions of his licence.

Consumption of gas to be ascertained by meter E+W+S

2 (1) Every consumer shall take his supply through a meter—

(a) the use of which does not contravene section 17 of this Act; and

(b) which is of a type appropriate for registering the quantity of gas supplied.

(2) In default of the consumer’s doing so or agreeing to do so—

(a) the public gas transporter may disconnect or, as the case may be, refuse to connect his premises; and

(b) any relevant gas supplier may cut off the supply of gas to his premises.

Meters to be kept in proper order E+W+S

3 (1) Every consumer shall at all times, at his own expense, keep all meters—

(a) which belong to him, or which are lent or hired to him and are owned otherwise than by the public gas transporter or a relevant gas supplier; and

(b) by which the quantity of gas supplied is registered,

in proper order for correctly registering the quantity of gas.

(2) In default of the consumer’s doing so—

(a) the public gas transporter may disconnect his premises; and

(b) any relevant gas supplier may cut off the supply of gas to his premises.

(3) In the case of any consumer, the public gas transporter or any relevant gas supplier shall at all times, without charge to the consumer, keep any meter which is owned by him and is lent or hired to the consumer in proper order for correctly registering the quantity of gas supplied.

(4) Sub-paragraph (3) above is without prejudice to any remedy the transporter or supplier may have against the consumer for failure to take proper care of the meter.

(5) In the case of any consumer, the public gas transporter, any relevant gas supplier and any relevant gas shipper—

(a) shall have power to remove, inspect and re-install any meter by which the quantity of gas supplied is registered; and

(b) shall, while any such meter is removed, fix a substitute meter on the premises;

and, subject to sub-paragraph (6) below, the cost of removing, inspecting and re-installing a meter and of fixing a substitute meter shall be defrayed by the transporter, supplier or shipper.

(6) Where such a meter is removed for the purpose of being examined by a meter examiner in accordance with section 17 of this Act, the expenses incurred in removing, examining and re-installing the meter and fixing a substitute meter shall be defrayed as follows—

(a) if the examination is carried out at the request of any person and the meter is found in proper order, by that person;

(b) if the meter is not so found, by the person required by sub-paragraph (1) or (3) above to keep the meter in proper order.

(7) A meter is found in proper order for the purposes of sub-paragraph (6) above if it is found to register correctly or to register erroneously to a degree not exceeding the degree permitted by regulations under section 17 of this Act.

(8) Nothing in this paragraph shall apply in relation to any meter which, in pursuance of an agreement falling within section 17(14) of this Act, is used for ascertaining the quantity of gas supplied to a consumer if either—

(a) the agreement was entered into before the appointed day; or

(b) the public gas transporter and each relevant gas shipper have agreed that the meter should be kept in proper order by a person other than the consumer.

Modifications etc. (not altering text)

C47 Sch. 2B para. 3(6)(b) applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 7(2)(b)

Meter as evidence of quantity of gas supplied E+W+S

4 (1) This paragraph applies where a consumer is supplied with gas through a meter at a rate not exceeding 75,000 therms a year. E+W+S

(2) Subject to sub-paragraph (3) below, the register of the meter shall be prima facie evidence of the quantity of gas supplied.

(3) Where the meter is found, when examined by a meter examiner appointed under section 17 of this Act, to register erroneously to a degree exceeding the degree permitted by regulations under that section, the meter shall be deemed to have registered erroneously to the degree so found since the relevant date, except in a case where it is proved to have begun to do so on some later date.

(4) In sub-paragraph (3) above “the relevant date ” means—

(a) the penultimate date on which, otherwise than in connection with the examination, the register of the meter was ascertained; or

(b) if regulations so provide, such other date as may be determined by or under the regulations.

Installation of meters in new premises etc. E+W+S

5 (1) This paragraph applies where a meter is to be used to register the quantity of gas supplied to a consumer and—

(a) gas has not previously been conveyed by the public gas transporter to the consumer’s premises;

(b) a new or substituted pipe is to be laid between the transporter’s main and the meter; or

(c) the meter is to be installed in a different position.

(2) Subject to sub-paragraph (3) below, the meter shall be installed as near as practicable to the public gas transporter’s main, but within a building comprised in the premises.

(3) The meter may be installed otherwise than within a building comprised in the premises if it is installed either—

(a) in accommodation of a type and construction approved by the public gas transporter by an approval given in relation to premises generally, or to any class or description of premises; or

(b) in a separate meter house or other accommodation outside a building comprised in the premises which is approved by the transporter in the case of those particular premises.

(4) If the requirements of this paragraph are not complied with, the public gas transporter may refuse to connect or, as the case may be, disconnect the consumer’s premises.

Meters for disabled persons E+W+S

6 Where, in the case of any consumer, the public gas transporter or a relevant gas supplier, for the purpose of meeting the needs of a disabled person—

(a) alters the position of any gas meter which is owned by the transporter or supplier and is lent or hired to the consumer; or

(b) replaces such a meter with one which has been specially adapted,

the transporter or supplier shall not charge the consumer for the alteration or replacement.

Valid from 01/10/2001

[F304 Use of pre-payment meters]] E+W+S

Textual Amendments

F304 Sch. 2B para. 6A and cross-heading inserted (1.10.2001) by 2000 c. 27, s. 84(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F305 6A E+W+S A pre-payment meter installed by an authorised supplier on any premises shall not be used to recover any sum other than a sum owing to an authorised supplier in respect of the supply of gas to those premises or the provision of the meter.]

Textual Amendments

F305 Sch. 2 para. 6A inserted (1.10.2001) by 2000 c. 27, s. 84(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Recovery of gas charges etc. E+W+S

7 (1) Sub-paragraphs (3) and (4) below apply where—

(a) a demand in writing is made by a gas supplier for the payment of any of the charges due to him from a consumer in respect of the supply of gas to the consumer’s premises, or to any premises previously owned or occupied by him; and

(b) the consumer does not pay those charges within 28 days after the making of the demand.

(2) Sub-paragraph (3) below also applies where—

(a) a request in writing is made by a gas supplier for the provision of a deposit by way of reasonable security for the payment of the charges due to him from a consumer in respect of the supply of gas to the consumer’s premises; and

(b) the consumer does not provide such a deposit, or agree to take his supply through a pre-payment meter, within 7 days after the making of the request.

(3) If the supplier is a relevant supplier, he may, after giving not less than 7 days’ notice of his intention—

(a) cut off the supply to the consumer’s premises by disconnecting the service pipe at the meter or by such other means as he thinks fit; and

(b) recover any expenses incurred in so doing from the consumer.

(4) If—

(a) the supplier is not a relevant supplier but another supplier ( “the new supplier ”) is such a supplier; and

(b) the supplier has assigned to the new supplier his right to recover any of the charges due to him from the consumer,

sub-paragraph (3) above shall apply as if any reference to the supplier were a reference to the new supplier.

(5) The powers conferred by sub-paragraphs (3) and (4) above shall not be exercisable as respects any charges or deposit the amount of which is genuinely in dispute.

Modifications etc. (not altering text)

C48 Sch. 2B para. 7(1)(3) modified (8.11.1995 with effect as mentioned by Sch. 5 Pt. II para. 24 of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 24; S.I. 1996/218, art. 2

Deemed contracts in certain cases E+W+S

8 (1) Where a gas supplier supplies gas to a consumer otherwise than in pursuance of a contract, the supplier shall be deemed to have contracted with the consumer for the supply of gas as from the time ( “the relevant time ”) when he began so to supply gas to the consumer.

(2) Where—

(a) the owner or occupier of any premises takes a supply of gas which has been conveyed to those premises by a public gas transporter in pursuance of arrangements made with the transporter by a gas shipper, or by a person authorised to make the arrangements by an exemption granted under section 6A of this Act;

(b) that supply is not made by a gas supplier, or by a person authorised to make it by an exemption granted under section 6A of this Act or an exception contained in Schedule 2A to this Act; and

(c) a supply of gas so conveyed has been previously made by a gas supplier,

the owner or occupier shall be deemed to have contracted with the appropriate supplier for the supply of gas as from the time ( “the relevant time ”) when he began to take such a supply; but nothing in this sub-paragraph shall be taken to afford a defence in any criminal proceedings.

(3) In sub-paragraph (2) above “the appropriate supplier ” means—

(a) the gas supplier who previously supplied gas to the premises or, if more than one, the gas supplier who last supplied gas to the premises; or

(b) where that supplier’s licence has been assigned generally, or has been assigned so far as relating to the premises, the person to whom the licence was so assigned; or

(c) where that supplier’s licence has been revoked on his application, or has been so restricted on his application as to exclude the premises, the gas supplier with whom that supplier made arrangements for securing continuity of supply to the premises.

(4) Sub-paragraphs (1) and (2) above shall not apply in any case where gas is supplied or, as the case may be, a supply of gas is taken at a rate which is reasonably expected to exceed 2,500 therms a year.

(5) If a gas supplier at any time so elects, sub-paragraph (4) above shall have effect, so far as relating to him and to supplies begun to be made or taken after that time, as if the reference to 2,500 therms were a reference to 75,000 therms.

(6) If a gas supplier at any time withdraws an election under sub-paragraph (5) above, sub-paragraph (4) above shall have effect, so far as relating to him and to supplies begun to be made or taken after that time, without the modification made by sub-paragraph (5) above.

(7) The express terms and conditions of a contract which, by virtue of sub-paragraph (1) or (2) above, is deemed to have been made shall be provided for by a scheme made under this paragraph.

(8) Each gas supplier shall make, and from time to time revise, a scheme for determining the terms and conditions which are to be incorporated in the contracts which, by virtue of sub-paragraph (1) or (2) above, are to be deemed to have been made; but this sub-paragraph shall not apply in any case where it is reasonably expected that neither of those sub-paragraphs will apply.

(9) The terms and conditions so determined may include terms and conditions for enabling the gas supplier to determine, in any case where the meter is not read immediately before the relevant time, the number of therms or kilowatt hours which are to be treated as supplied to the consumer, or taken by the owner or occupier of the premises, during the period beginning with the relevant time and ending with—

(a) the time when the meter is first read after the relevant time; or

(b) the time when the supplier ceases to supply gas to the consumer, or the owner or occupier ceases to take a supply of gas,

whichever is the earlier.

(10) A scheme under this paragraph may make different provisions for different cases or classes of cases, or for different areas, determined by, or in accordance with, the provisions of the scheme.

(11) As soon as practicable after a gas supplier makes a scheme under this paragraph, a revision of such a scheme, an election under sub-paragraph (5) above or a withdrawal under sub-paragraph (6) above of such an election, he shall—

(a) publish, in such manner as he considers appropriate for bringing it to the attention of persons likely to be affected by it, a notice stating the effect of the scheme, revision, election or withdrawal;

(b) send a copy of the scheme, revision, election or withdrawal to the Director and to the Council; and

(c) if so requested by any other person, send such a copy to that person without charge to him.

Supplies of gas illegally taken E+W+S

9 (1) Where any person takes a supply of gas which is in the course of being conveyed by a public gas transporter, the transporter shall be entitled to recover from that person the value of the gas so taken.

(2) Where—

(a) any person at premises which have been reconnected in contravention of paragraph 11(1) below takes a supply of gas which has been conveyed to those premises by the public gas transporter; and

(b) the supply is taken otherwise than in pursuance of a contract made with a gas supplier, or deemed to have been made with such a supplier by virtue of paragraph 8 above or paragraph 19 of Schedule 5 to the Gas Act 1995,

the transporter shall be entitled to recover from that person the value of the gas so taken.

(3) Each public gas transporter shall make, and from time to time revise, a scheme providing for the manner in which, and the persons by whom, the number of therms or kilowatt hours represented by a supply of gas taken in such circumstances as are mentioned in sub-paragraph (1) or (2) above is to be determined for the purposes of that sub-paragraph.

(4) Sub-paragraphs (10) and (11) of paragraph 8 above shall apply in relation to a scheme under this paragraph as they apply in relation to a scheme under that paragraph.

(5) In this paragraph—

• “gas supplier ” includes a person authorised to supply gas by an exemption granted under section 6A of this Act or an exception contained in Schedule 2A to this Act;

• “value ”, in relation to any gas taken in such circumstances as are mentioned in sub-paragraph (1) or (2) above, means the amount which, if the gas had been taken in such circumstances as are mentioned in sub-paragraph (2) of paragraph 8 above, could reasonably be expected to have been payable in respect of the gas under a contract deemed to have been made by virtue of that sub-paragraph.

Injury to gas fittings and interference with meters E+W+S

10 (1) If any person intentionally or by culpable negligence—

(a) injures or allows to be injured any gas fitting provided by a public gas transporter or gas supplier, or any service pipe by which any premises are connected to such a transporter’s main;

(b) alters the index to any meter used for measuring the quantity of gas conveyed or supplied by such a transporter or supplier; or

(c) prevents any such meter from duly registering the quantity of gas conveyed or supplied,

he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(2) In the case of any offence under sub-paragraph (1) above, the transporter or supplier may disconnect the premises of, or cut off the supply of gas to, the person so offending.

(3) Where any person is prosecuted for an offence under sub-paragraph (1)(b) or (c) above, the possession by him of artificial means for causing an alteration of the index of the meter or, as the case may be, for preventing the meter from duly registering shall, if the meter was in his custody or under his control, be prima facie evidence that the alteration or prevention was intentionally caused by him.

Restoration of supply without consent E+W+S

11 (1) Where a consumer’s premises have been disconnected by a public gas transporter, or a supply of gas to a consumer’s premises has been cut off by a gas supplier, otherwise than in the exercise of a power conferred by—

(a) paragraph 20, 21 or 22 below;

(b) regulations under section 18(2) or 18A(1) of this Act; or

(c) regulations under section 15 of the M66 Health and Safety at Work etc. Act 1974 (health and safety regulations),

no person shall, without the relevant consent, reconnect the premises or restore the supply.

(2) If any person acts in contravention of sub-paragraph (1) above—

(a) he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale; and

(b) the transporter or supplier may again disconnect the premises or, as the case may be, cut off the supply.

(3) In this paragraph “the relevant consent ” means—

(a) where the premises are reconnected, the consent of the public gas transporter to whose main the reconnection is made;

(b) where the supply is restored, the consent of the supplier who cut off the supply, or the consent of a person who is or is about to become a relevant gas supplier.

Modifications etc. (not altering text)

C49 Sch. 2B para. 11 modified (8.11.1995 with effect as mentioned in Sch. 5 Pt. II para. 26 of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 26; S.I. 1996/218, art. 2

Marginal Citations

M66 1974 c.37.

Failure to notify connection or disconnection of service pipe E+W+S

12 (1) No person shall connect any meter with a service pipe through which gas is conveyed to any premises by a public gas transporter, or disconnect any meter from any such pipe, unless he has given—

(a) in a case where gas is supplied to the premises by a relevant gas supplier whose name and address are known to him, to the supplier; and

(b) in any other case, to the transporter,

so that it is received by the supplier or transporter at least 48 hours before he does so, notice in the prescribed form of his intention to do so.

(2) Subject to sub-paragraph (3) below, a notice under sub-paragraph (1) above shall contain—

(a) details of the time and place of the proposed connection or disconnection; and

(b) such other information as may be prescribed.

(3) In so far as it is not reasonably practicable for a notice under sub-paragraph (1) above to contain any information required by sub-paragraph (2)(b) above, it shall be a sufficient compliance with that requirement if the information is given to the relevant gas supplier or, as the case may be, the public gas transporter within 48 hours after the connection or disconnection is effected.

(4) If any person acts in contravention of this paragraph, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Modifications etc. (not altering text)

C50 Sch. 2B para. 12(1) extended (8.11.1995 with effect as mentioned in Sch. 5 Pt. II para. 27 of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 27; S.I. 1996/218, art. 2

Failure to notify disconnection of meter E+W+S

13 (1) Subject to sub-paragraph (2) below, this paragraph applies where any meter through which gas has been supplied to any premises is completely disconnected, that is to say, is disconnected both from the service pipe and from all other pipes within the premises. E+W+S

(2) This paragraph does not apply where the meter—

(a) is disconnected for the purposes of an examination under section 17 of this Act or an inspection under paragraph 3(5) above; or

(b) is disconnected for a particular purpose (whether repair or repositioning of the meter, detection of a gas leak or otherwise) and is intended to be reconnected.

(3) Except in so far as it is not reasonably practicable for him to do so, the person making the disconnection shall—

(a) ascertain the name and address of the owner of the meter; and

(b) inform that owner of the disconnection and of the address at which the meter will be available for collection.

(4) If any person fails to comply with sub-paragraph (3) above, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 2 on the standard scale.

Failure to maintain shipping arrangements E+W+S

14 (1) Where—

(a) any arrangements for the conveyance of gas by a public gas transporter to a consumer’s premises at a rate reasonably expected to exceed 2,500 therms a year have been made by a gas shipper, or by a person authorised to make the arrangements by an exemption granted under section 6A of this Act; and

(b) those arrangements have ceased to operate and have not been replaced by arrangements made for the like purpose,

the transporter may, after giving 21 days’ notice to the relevant persons, disconnect the premises.

(2) The relevant persons for the purposes of sub-paragraph (1) above are—

(a) the occupier, or the owner of the premises if they are unoccupied; and

(b) any gas supplier who, to the knowledge of the transporter, has contracted to supply gas to the premises.

(3) The notice required to be given by sub-paragraphs (1) and (2)(a) above may, in the case of unoccupied premises the owner of which is unknown to the public gas transporter and cannot be ascertained after diligent inquiry, be given by affixing it upon a conspicuous part of the premises.

Maintenance etc. of service pipes E+W+S

15 (1) A public gas transporter shall carry out any necessary work of maintenance, repair or renewal of any service pipe by which gas is conveyed by him to a consumer’s premises, whether or not the service pipe was supplied and laid at the transporter’s expense.

(2) The cost of any work carried out in accordance with sub-paragraph (1) above shall be defrayed as follows—

(a) if the work was made necessary by any intentional act or culpable negligence of the consumer and the transporter so requires, by the consumer;

(b) in any other case, by the transporter.

Alterations etc. of burners on change of calorific value E+W+S

16 (1) This paragraph applies where there is a change in the properties of any gas which is conveyed by a public gas transporter to a consumer’s premises at a rate not exceeding 75,000 therms a year.

(2) It shall be the duty of the public gas transporter to take without charge to the consumer such steps as may be necessary to alter, adjust or replace the burners in appliances at the premises which burn that gas in such manner as to secure that the gas can be burned with safety and efficiency.

Use of antifluctuators and valves E+W+S

17 (1) Where a consumer uses gas for working or supplying a compressor, that is to say—

(a) an engine, gas compressor or other similar apparatus; or

(b) any apparatus liable to produce in any main of the public gas transporter a pressure less than atmospheric pressure,

he shall, if so required by the transporter by notice, fix in a suitable position and keep in use an appliance provided by him which will effectually prevent F306 . . . inconvenience F306 . . . being caused to persons by reason that he and they are supplied with gas conveyed through the same system.

(2) Where a consumer uses for or in connection with the consumption of gas—

(a) any air at high pressure ( “compressed air ”); or

(b) any gaseous substance not conveyed by the public gas transporter ( “extraneous gas ”),

he shall, if so required [F307 other than for the purpose of preventing danger]by the transporter by notice, fix in a suitable position and keep in use an appliance provided by him which will effectually prevent the admission of the compressed air or extraneous gas into the service pipe or into any main through which gas is conveyed by the transporter.

(3) Where a person is required by this paragraph to keep in use any appliance, he shall at his own expense keep it in proper order and repair, and repair, renew or replace it if it is not in proper order or repair.

(4) A consumer shall not be entitled to use a compressor, or any apparatus for using compressed air or extraneous gas, unless he has given to the public gas transporter not less than 14 days’ notice of his intention to do so; but this sub-paragraph shall not apply to the use of any compressor or apparatus which was lawfully in use immediately before the appointed day.

(5) If a consumer makes default in complying with any provision of this paragraph [F308 or regulation 38 of the Gas Safety (Installation and Use) Regulations 1998 or directions made thereunder], the public gas transporter may disconnect the consumer’s premises.

(6) The public gas transporter shall have power to disconnect, remove, test and replace any appliance which a consumer is required by this paragraph [F308 or regulation 38 of the Gas Safety (Installation and Use) Regulations 1998 or directions made thereunder]to keep in use; and any expenses incurred by the transporter under this sub-paragraph shall, if the appliance is found in proper order and repair, be paid by the transporter, but otherwise shall be paid by the consumer.

Textual Amendments

F306 Words in Sch. 2B para. 17(1) deleted (31.10.1998) by S.I. 1998/2451, reg. 41(2)(a)

F307 Words in Sch. 2B para. 17(2) added (31.10.1998) by S.I. 1998/2451, reg. 41(2)(b)

F308 Words in Sch. 2B para. 17(5)(6) added (31.10.1998) by S.I. 1998/2451, reg. 41(2)(c)

Modifications etc. (not altering text)

C51 Sch. 2B para. 17(1)(2) extended (8.11.1995 with effect as mentioned by Sch. 5 Pt. II para. 25 of the extending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 25; S.I. 1996/218, art. 2

Improper use of gas E+W+S

18 If a consumer improperly uses or deals with gas so as to interfere with the efficient conveyance of gas by the public gas transporter (whether to the consumer or to any other person), the transporter may, if he thinks fit, disconnect the consumer’s premises.

No obligation to restore supply where consumer in default E+W+S

19 (1) This paragraph applies where—

(a) a consumer’s premises have been disconnected by a public gas transporter in pursuance of paragraph 2(2)(a), 3(2)(a), 5(4), 10(2), 11(2)(b), 14(1), 17(5) or 18 above; or

(b) a supply of gas to a consumer’s premises has been cut off by a gas supplier in pursuance of paragraph 2(2)(b), 3(2)(b), 7(3) or (4), 10(2) or 11(2)(b) above.

(2) The transporter or supplier shall not be under any obligation to reconnect the consumer’s premises or, as the case may be, resume the supply of gas to the consumer’s premises until the consumer either is no longer an owner or occupier of the premises or—

(a) has made good the default, or remedied the matter, in consequence of which the premises were disconnected or the supply was cut off; and

(b) has paid the reasonable expenses of disconnecting and reconnecting the premises or, as the case may be, of cutting off the supply and restoring the supply.

(3) In this paragraph “consumer ”, in relation to a disconnection or cutting off under paragraph 11(2)(b) above, means—

(a) the owner of the premises at the time when the reconnection was made, or the supply was restored, without the relevant consent—

(i) if the premises were unoccupied at that time, or

(ii) if that reconnection or restoration of supply was made by him or on his behalf; and

(b) the occupier of the premises at that time in any other case;

and in this sub-paragraph “relevant consent ” has the same meaning as in paragraph 11 above.

Notified escapes of gas E+W+S

F309 20 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F309 Sch. 2B para. 20 repealed (1.4.1996) by S.I. 1996/551, reg. 12(2)

Suspected escapes of gas E+W+S

F310 21 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F310 Sch. 2B para. 21 repealed (1.4.1996) by S.I. 1996/551, reg. 12(2)

Entry for preventing escapes of gas etc. E+W+S

F311 22 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F311 Sch. 2B para. 22 repealed (8.1.1997) by S.I. 1996/3203, art. 2

Entry during continuance of supply E+W+S

23 (1) Any officer authorised by a public gas transporter may at all reasonable times, on the production of some duly authenticated document showing his authority, enter a consumer’s premises for the purpose of—

(a) inspecting gas fittings;

(b) ascertaining the quantity of gas conveyed to the premises;

(c) exercising the power conferred on the transporter by paragraph 3(5) above;

(d) performing the duty imposed on the transporter by paragraph 15 or 16 above;

(e) exercising the power conferred on the transporter by paragraph 17(6) above; or

(f) in the case of premises where the transporter has reason to believe that a compressor or compressed air or extraneous gas is being used, inspecting the premises and ascertaining whether the provisions of paragraph 17 above are being complied with.

(2) Any officer authorised by a relevant gas supplier or relevant gas shipper may at all reasonable times, on the production of some duly authenticated document showing his authority, enter a consumer’s premises for the purpose of—

(a) inspecting gas fittings;

(b) ascertaining the quantity of gas supplied or conveyed to the premises; or

(c) exercising the power conferred on the supplier or shipper by paragraph 3(5) above.

(3) In this paragraph “compressor ”, “compressed air ” and “extraneous gas ” have the same meanings as in paragraph 17 above, and any reference to a relevant gas supplier or relevant gas shipper includes a reference to a person who has been or is about to become such a supplier or shipper.

Modifications etc. (not altering text)

C52 Sch. 2B para. 23(1)(b) extended (8.11.1995 with effect as mentioned by Sch. 5 Pt. II para. 28(1) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 28(1); S.I. 1996/218, art. 2

Entry on discontinuance of supply E+W+S

24 (1) This paragraph applies where—

(a) a public gas transporter or gas supplier is authorised by any provision of this Act to disconnect any premises, or, as the case may be, to cut off or discontinue the supply of gas to any premises;

(b) a person occupying premises supplied with gas by a gas supplier ceases to require a supply of gas; or

(c) a person entering into occupation of any premises previously supplied with gas by a gas supplier does not take a supply of gas.

(2) Any officer authorised by the public gas transporter or gas supplier, after 24 hours’ notice to the occupier, or to the owner of the premises if they are unoccupied, may at all reasonable times, on production of some duly authenticated document showing his authority, enter the premises for the purpose of—

(a) disconnecting the premises, or cutting off or discontinuing the supply of gas to the premises; or

(b) removing any meter or other gas fitting owned by the transporter or supplier.

(3) The notice required to be given by sub-paragraph (2) above may, in the case of unoccupied premises the owner of which is unknown to the public gas transporter or gas supplier and cannot be ascertained after diligent inquiry, be given by affixing it upon a conspicuous part of the premises not less than 48 hours before the premises are entered.

Modifications etc. (not altering text)

C53 Sch. 2B para. 24(2) extended (8.11.1995 with effect as mentioned by Sch. 5 Pt. II para. 28(3) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 28(3); S.I. 1996/218, art. 2

Entry following discontinuance of supply E+W+S

25 (1) This paragraph applies where a consumer’s premises have been disconnected by a public gas transporter, or a supply of gas to a consumer’s premises has been cut off by a gas supplier, otherwise than in the exercise of a power conferred by—

(a) paragraph 20, 21 or 22 above;

(b) regulations under section 18(2) or 18A(1) of this Act; or

(c) regulations under section 15 of the M67 Health and Safety at Work etc. Act 1974 (health and safety regulations).

(2) Any officer authorised by the public gas transporter or gas supplier may at all reasonable times, on production of some duly authenticated document showing his authority, enter the premises for the purpose of ascertaining whether the premises have been reconnected, or the supply has been restored, without the relevant consent.

(3) In this paragraph “the relevant consent ” has the same meaning as in paragraph 11 above.

Modifications etc. (not altering text)

C54 Sch. 2B para. 25 modified (8.11.1995 with effect as mentioned by Sch. 5 Pt. II para. 26 of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 26; S.I. 1996/218, art. 2

Marginal Citations

M67 1974 c. 37.

Entry for removing fittings and meters E+W+S

26 (1) This paragraph applies where—

(a) a person occupying premises supplied with gas through a meter or other gas fitting owned by a public gas transporter or gas supplier ceases to take a supply through that meter or fitting; or

(b) a person entering into occupation of any premises previously supplied with gas through a meter or other gas fitting so owned does not take a supply of gas through that meter or fitting.

(2) Any officer authorised by the public gas transporter or gas supplier, after 24 hours’ notice to the occupier, or to the owner of the premises if they are unoccupied, may at all reasonable times, on production of some duly authenticated document showing his authority, enter the premises for the purpose of removing the meter or other gas fitting.

(3) Sub-paragraph (3) of paragraph 24 above applies for the purposes of this paragraph as it applies for the purposes of that paragraph.

Entry for replacing, repairing or altering pipes E+W+S

27 (1) Any officer authorised by a public gas transporter, after 7 clear days’ notice to the occupier of any premises, or to the owner of any premises which are unoccupied, may at all reasonable times, on production of some duly authenticated document showing his authority, enter the premises for the purpose of—

(a) placing a new pipe in the place of any existing pipe which has already been lawfully placed; or

(b) repairing or altering any such existing pipe.

(2) The notice required to be given by sub-paragraph (1) above may, in the case of unoccupied premises the owner of which is unknown to the public gas transporter and cannot be ascertained after diligent inquiry, be given by affixing it upon a conspicuous part of the premises.

(3) In cases of emergency arising from defects in any pipes entry may be made under sub-paragraph (1) above without the notice required to be given by that sub-paragraph, but notice of the entry and the justification for it shall then be given as soon as possible after the occurrence of the emergency.

Provisions as to powers of entry E+W+S

28 (1) No officer shall be authorised by a public gas transporter, gas supplier or gas shipper to exercise any powers of entry conferred by this Schedule unless—

(a) the transporter, supplier or shipper has taken all reasonable steps to ensure that he is a fit and proper person to exercise those powers; or

(b) in cases of emergency, those powers are powers conferred by paragraph 22 above.

(2) Where in pursuance of any powers of entry conferred by this Schedule, entry is made on any premises by an officer authorised by a public gas transporter, gas supplier or gas shipper—

(a) the officer shall ensure that the premises are left no less secure by reason of the entry; and

(b) the transporter, supplier or shipper shall make good, or pay compensation for, any damage caused by the officer, or by any person accompanying him in entering the premises, in taking any action therein authorised by this Schedule, or in making the premises secure.

(3) Any officer exercising powers of entry conferred by this Schedule may be accompanied by such persons as may be necessary or expedient for the purpose for which the entry is made, or for the purposes of sub-paragraph (2) above.

(4) If any person intentionally obstructs any officer exercising powers of entry conferred by this Schedule, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(5) The M68 Rights of Entry (Gas and Electricity Boards) Act 1954 (entry under a justice’s warrant) shall apply in relation to any powers of entry conferred by this Schedule.

Marginal Citations

M68 1954 c. 21.

Gas meters and fittings not to be subject to distress E+W+S

29 (1) Any gas meter which is connected to a service pipe, and any gas fitting in a consumer’s premises which is owned by a public gas transporter or gas supplier and is marked or impressed with a sufficient mark or brand indicating its owner—

(a) shall not be subject to distress or be liable to be taken in execution under process of any court or any proceedings in bankruptcy against the person in whose possession it may be; and

(b) shall be deemed not to be a landlord’s fixture, notwithstanding that it may be fixed or fastened to any part of the premises in which it may be situated.

(2) In the application of sub-paragraph (1)(a) above to Scotland, for the word “distress ” and the words “in bankruptcy against ” there shall be substituted respectively the word “poinding ” and the words “for the sequestration of the estate of ”.

Section 9(3).

SCHEDULE 3 U.K. Acquisition of Land by Public Gas Suppliers

Part I E+W+S Powers of Acquisition Etc.

Modifications etc. (not altering text)

C55 Sch. 3 Pt. I (ss. 1-3): Functions transferred (15.10.2000) to the Scottish Ministers by S.I. 2000/3253, arts. 1(1), 3, Sch. 2

C56 Sch. 3 Pt. I (ss. 1-3) modified (14.12.2000) by S.I. 2000/3253, arts. 1(2), 2, Sch. 1 para. 6

1 (1) The Secretary of State, after consultation with the Director, may authorise a [F312 public gas transporter] to purchase compulsorily any land.

(2) In sub-paragraph (1) above “land” includes any right over land; and the power of the Secretary of State under that sub-paragraph includes power to authorise the acquisition of rights over land by creating new rights as well as acquiring existing ones.

Textual Amendments

F312 Words in Sch. 3 para. 1 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(a); S.I. 1996/218, art. 2

2 (1) This paragraph applies to land which—

(a) for the purposes of the M69 Acquisition of Land Act 1981, is or forms part of a common, open space or a fuel or field garden allotment; or

(b) for the purposes of the M70 Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947, is or forms part of a common or open space.

(2) Where for any purpose a [F313 public gas transporter] has acquired, or proposes to acquire, any land to which this paragraph applies, or any right over any such land, and other land is required for the purpose of being given in exchange for the land or right in question, the Secretary of State may authorise [F314 the transporter] to purchase that other land compulsorily, or he may acquire it by agreement.

Textual Amendments

F313 Words in Sch. 3 para. 2(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(a); S.I. 1996/218, art. 2

F314 Words in Sch. 3 para. 2(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(c); S.I. 1996/218, art. 2

Marginal Citations

M69 1981 c. 67.

M70 1947 c. 42.

3 Where a [F315 public gas transporter] has acquired any land by virtue of paragraph 1 above, he shall not dispose of that land or of any interest in or right over it except with the consent of the Director.

Textual Amendments

F315 Words in Sch. 3 para. 3 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(a); S.I. 1996/218, art. 2

Part II E+W+S Procedure, Compensation Etc. (England and Wales)

Application of Acquisition of Land Act 1981 generally E+W+S

4 The Acquisition of Land Act 1981 shall apply to a compulsory purchase by a [F316 public gas transporter] of land or rights in England and Wales, subject, in the case of a compulsory acquisition of a right by the creation of a new right, to Schedule 3 to that Act.

Textual Amendments

F316 Words in Sch. 3 para. 4 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(a); S.I. 1996/218, art. 2

New rights: general adaptation of Compulsory Purchase Act 1965 E+W+S

5 The M71 Compulsory Purchase Act 1965 shall have effect with the modifications necessary to make it apply to a [F317 public gas transporter’s] compulsory acquisition of a right in England and Wales by the creation of a new right as it applies to the compulsory acquisition of land, so that, in appropriate contexts, references in that Act to land are to be read as referring, or as including references, to the right acquired or to be acquired, or to land over which the right is or is to be exercisable, according to the requirements of the particular context.

Textual Amendments

F317 Words in Sch. 3 para. 5 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(a); S.I. 1996/218, art. 2

Marginal Citations

M71 1965 c. 56.

New rights: specific adaptations of Act of 1965 E+W+S

6 Without prejudice to the generality of paragraph 5 above, Part I of the said Act of 1965 shall apply in relation to a [F318 public gas transporter’s] compulsory acquisition of a right in England and Wales by the creation of a new right with the modifications specified in paragraphs 7 to 12 below.

Textual Amendments

F318 Words in Sch. 3 para. 6 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(a); S.I. 1996/218, art. 2

7 E+W+S For section 7 of that Act (measure of compensation) there shall be substituted the following section—

“7 In assessing the compensation to be paid by the acquiring authority under this Act regard shall be had not only to the extent (if any) to which the value of the land over which the right is to be acquired is depreciated by the acquisition of the right but also to the damage (if any) to be sustained by the owner of the land by reason of its severance from other land of his, or injuriously affecting that other land by the exercise of the powers conferred by this or the special Act.”

8 E+W+S For subsection (1) of section 8 of that Act (protection for vendor against severance of house, garden, etc.) there shall be substituted the following subsections—

“(1) No person shall be required to grant any right over part only—

(a) of any house, building or manufactory; or

(b) of a park or garden belonging to a house,

if he is willing to sell the whole of the house, building, manufactory, park or garden, unless the Lands Tribunal determine that—

(i) in the case of a house, building or manufactory, the part over which the right is proposed to be acquired can be made subject to that right without material detriment to the house, building or manufactory; or

(ii) in the case of a park or garden, the part over which the right is proposed to be acquired can be made subject to that right without seriously affecting the amenity or convenience of the house;

and if the Lands Tribunal so determine, the Tribunal shall award compensation in respect of any loss due to the acquisition of the right, in addition to its value; and thereupon the party interested shall be required to grant to the acquiring authority that right over the part of the house, building, manufactory, park or garden.

(1A) In considering the extent of any material detriment to a house, building or manufactory, or any extent to which the amenity or convenience of a house is affected, the Lands Tribunal shall have regard not only to the right which is to be acquired over the land, but also to any adjoining or adjacent land belonging to the same owner and subject to compulsory purchase.”

9 E+W+S The following provisions of that Act (being provisions stating the effect of a deed poll executed in various circumstances where there is no conveyance by persons with interests in the land)—

• section 9(4) (refusal by owners to convey);

• Schedule 1, paragraph 10(3) (owners under incapacity);

• Schedule 2, paragraph 2(3) (absent and untraced owners); and

• Schedule 4, paragraphs 2(3) and 7(2) (common land),

shall be so modified as to secure that, as against persons with interests in the land which are expressed to be overridden by the deed, the right which is to be compulsorily acquired is vested absolutely in the acquiring authority.

10 E+W+S Section 11 of that Act (powers of entry) shall be so modified as to secure that, as from the date on which the acquiring authority have served notice to treat in respect of any right, they have power, exercisable in the like circumstances and subject to the like conditions, to enter for the purpose of exercising that right (which shall be deemed for this purpose to have been created on the date of service of the notice); and sections 12 (penalty for unauthorised entry) and 13 (entry on sheriff’s warrant in the event of obstruction) shall be modified correspondingly.

11 E+W+S Section 20 of that Act (protection for interests of tenants at will etc.) shall apply with the modifications necessary to secure that persons with such interests as are mentioned in that section are compensated in a manner corresponding to that in which they would be compensated on a compulsory acquisition of that land, but taking into account only the extent (if any) of such interference with such an interest as is actually caused, or likely to be caused, by the exercise of the right in question.

12 E+W+S Section 22 of that Act (protection of acquiring authority’s possession where by inadvertence an estate, right or interest has not been got in) shall be so modified as to enable the acquiring authority, in circumstances corresponding to those referred to in that section, to continue entitled to exercise the right acquired, subject to compliance with that section as respects compensation.

New rights: compensation E+W+S

13 The enactments in force in England and Wales with respect to compensation for the compulsory purchase of land shall apply with the necessary modifications as respects compensation in the case of a [F319 public gas transporter’s] compulsory acquisition of a right by the creation of a new right as they apply to compensation on the compulsory purchase of land and interests in land.

Textual Amendments

F319 Words in Sch. 3 para. 13 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(b); S.I. 1996/218, art. 2

Part III E+W+S Procedure, Compensation Etc. (Scotland)

Modifications etc. (not altering text)

C57 Sch. 3 Pt. III (ss. 14-29): Functions transferred (15.10.2000) to the Scottish Ministers by S.I. 2000/3253, arts. 1(1), 3, Sch. 2

C58 Sch. 3 Pt. III (ss. 14-29) modified (14.12.2000) by S.I. 2000/3253, arts. 1(2), 2, Sch. 1 para. 6

Application of Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 generally E+W+S

14 E+W+S The M72 Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 shall apply to the compulsory purchase by a [F320 public gas transporter] of land or rights in Scotland as if [F321 the transporter] were a local authority within the meaning of that Act, and as if this Act had been in force immediately before the commencement of that Act.

Textual Amendments

F320 Words in Sch. 3 para. 14 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(a); S.I. 1996/218, art. 2

F321 Words in Sch. 3 para. 14 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(c); S.I. 1996/218, art. 2

Marginal Citations

M72 1947 c. 42.

New rights: general application of Act of 1947 and incorporated enactments E+W+S

15 E+W+S The enactments incorporated with this Act by virtue of Part I of Schedule 2 to the said Act of 1947 and that Act shall have effect with the modifications necessary to make them apply to a [F322 public gas transporter’s] compulsory acquisition of a right in Scotland by the creation of a new right as they apply to the compulsory acquisition of land, so that, in appropriate contexts, references in those enactments and that Act to land are to be read as referring, or as including references, to the right acquired or to be acquired, or to land over which the right is or is to be exercisable, according to the requirements of the particular context.

Textual Amendments

F322 Words in Sch. 3 para. 15 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(b); S.I. 1996/218, art. 2

New rights: specific adaptations of Act of 1947 E+W+S

16 E+W+S Without prejudice to the generality of paragraph 15 above, Part III of Schedule 1 to the said Act of 1947 (requirement of special parliamentary procedure, and other special provisions, in the case of acquisition of certain descriptions of land) shall apply in relation to a [F323 public gas transporter’s] compulsory acquisition of a right in Scotland by the creation of a new right with the modifications specified in paragraphs 17 to 20 below.

Textual Amendments

F323 Words in Sch. 3 para. 16 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 56(b); S.I. 1996/218, art. 2

17 E+W+S In paragraph 9 of that Schedule (compulsory purchase affecting land of the National Trust for Scotland) for references to the compulsory purchase of land there shall be substituted references to the compulsory acquisition of rights over land.

18 E+W+S In paragraph 10 of that Schedule (land of statutory undertakers)—

(a) for the words “land comprised in the order” there shall be substituted the words “land over which a right is to be acquired by virtue of the order”;

(b) for the words “purchase of” there shall be substituted the words “acquisition of a right over”;

(c) for the words “it can be purchased and not replaced” there shall be substituted the words “the right can be acquired”; and

(d) for sub-paragraph (ii) there shall be substituted the following sub-paragraph—

“(ii) that any detriment to the carrying on of the undertaking, in consequence of the acquisition of the right, can be made good by the undertakers by the use of other land belonging to, or available for acquisition by, them”.

19 E+W+S In paragraph 11 of that Schedule (common or open space), for sub-paragraph (1) there shall be substituted the following sub-paragraph—

“(1) In so far as a compulsory purchase order authorises the acquisition of a right over land forming part of a common or open space, it shall be subject to special parliamentary procedure unless the Secretary of State is satisfied—

(a) that the land, when burdened with that right, will be no less advantageous to those persons in whom it is vested and other persons, if any, entitled to rights of common or other rights, and to the public, than it was before; or

(b) that there has been or will be given in exchange for the right additional land which will as respects the persons in whom there is vested the land over which the right is to be acquired, the persons, if any, entitled to rights of common or other rights over that land, and the public, be adequate to compensate them for the disadvantages which result from the acquisition of the right, and that the additional land has been or will be vested in the persons in whom there is vested the land over which the right is to be acquired, and subject to the like rights, trusts and incidents as attach to that land apart from the compulsory purchase order; or

(c) that the land affected by the right to be acquired does not exceed 250 square yards in extent, and that the giving of other land in exchange for the right is unnecessary, whether in the interests of the persons, if any, entitled to rights of common or other rights or in the interests of the public,

and certifies accordingly.”

20 In paragraph 12 of that Schedule, for the words “the purchase of” there shall be substituted the words “the acquisition of a right over”.

21 E+W+S Paragraph 10 above shall have effect in relation to the said Act of 1947 with the substitution of a reference to paragraph 3(1) of the Second Schedule to that Act for the reference to section 11 of the M73 Compulsory Purchase Act 1965, and with the omission of the words from “and sections” to the end of the paragraph.

Marginal Citations

M73 1965 c. 56.

22 E+W+S For paragraph 4 of the Second Schedule to the said Act of 1947 (protection for owner against severance of property) there shall be substituted the provisions substituted by paragraph 8 of this Schedule for section 8(1) of the said Act of 1965, and any reference in those provisions to the Lands Tribunal shall be construed as a reference to the Lands Tribunal for Scotland.

Restrictions on application of paragraphs 15 to 20 above E+W+S

23 E+W+S So much of paragraph 15 above as relates to the said Act of 1947, and paragraphs 16 to 20 above, shall not apply to any compulsory purchase to which, by virtue of section 12 or 13 of the M74 Gas Act 1965, Part I of Schedule 4 to that Act applies.

Marginal Citations

M74 1965 c. 36.

New Rights: specific adaptions of Lands Clauses Consolidation (Scotland) Act 1845 E+W+S

24 E+W+S For section 61 of the M75 Lands Clauses Consolidation (Scotland) Act 1845 (estimation of compensation) there shall be substituted the following section—

“61 In estimating the purchase money or compensation to be paid by the promoters of the undertaking in the Special Act, in any of the cases aforesaid, regard shall be had not only to the extent (if any) to which the value of the land over which the right is to be acquired is depreciated by the acquisition of the right, but also to the damage (if any) to be sustained by the owner of the land by reason of its severance from other land of his, or injuriously affecting that other land by the exercise of the powers conferred by this or the Special Act.”

Marginal Citations

M75 1845 c. 19.

25 E+W+S The following provisions of that Act (being provisions stating the effect of a notarial instrument or of a disposition executed in various circumstances where there is no conveyance by persons with interests in the land)—

• section 74 (failure by owner to convey);

• section 76 (refusal to convey or show title or owner cannot be found);

• section 98 (vesting of common land),

shall be so modified as to secure that, as against persons with interests in the land over which the right is to be compulsorily acquired such right is vested absolutely in the promoters of the undertaking.

26 E+W+S Paragraph 11 above shall have effect in relation to that Act with the substitution of a reference to sections 114 and 115 thereof for the reference to section 20 of the M76 Compulsory Purchase Act 1965.

Marginal Citations

M76 1965 c. 56.

27 E+W+S Paragraph 12 above shall have effect in relation to that Act with the substitution of a reference to sections 117 and 118 thereof for any reference to section 22 of the said Act of 1965.

New rights: compensation E+W+S

28 E+W+S Paragraph 13 above shall have effect in relation to Scotland with the substitution of. “ Scotland ” for “England and Wales”.

29 E+W+S This Part of this Schedule shall extend to Scotland only.

SCHEDULE 4 E+W+S Power of Public Gas Suppliers to Break Up Streets, Bridges Etc.

1 (1) Subject to the following provisions of this Schedule, a [F324 public gas transporter] may execute the following kinds of works, that is to say—

[F325 (a) placing pipes, conduits, service pipes, cables, sewers and other works, and pressure governors, ventilators and other apparatus, in or under any street; and

(b) from time to time repairing, altering or removing any such works or apparatus placed in or under any street (whether by him or by any other person).]

(2) Subject as aforesaid, a [public gas transporter] may execute any works requisite for or incidental to the purposes of any works falling within sub-paragraph (1) above, including for those purposes—

(a) opening or breaking up any [F326 street] or any sewers, drains or tunnels within or underany [F326 street]; and

(b) removing or using all earth and materials in or under any [F326 street].

(3) A [F324 public gas transporter] shall do as little damage as possible in the exercise of the powers conferred by this paragraph and shall make compensation for any damage done in the exercise of those powers.

[F327 (4) The Secretary of State shall by regulations provide that, in such cases and to such extent as may be provided by the regulations, a public gas transporter shall pay, by way of compensation for any loss sustained by any person in consequence of the exercise of those powers, such sum as may be determined in accordance with the regulations.

(5) No regulations may be made under sub-paragraph (4) above which amend, or re-enact with modifications, regulations previously made under that sub-paragraph.]

Textual Amendments

F324 Words in Sch. 4 para. 1 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 57(1)(a); S.I. 1996/218, art. 2

F325 Sch. 4 para. 1(1)(a)(b) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 57(2); S.I. 1996/218, art. 2

F326 Words in Sch. 4 para. 1(1)(2) substituted (1.1.1993)by New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1), Sch. 8 para. 119(2) (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch. 2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

F327 Sch. 4 para. 1(4)(5) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 57(3); S.I. 1996/218, art. 2

2 (1) The powers of a [F328 public gas transporter] under paragraph 1 above shall include power to erect in any street one or more structures for housing any apparatus, but only with the consent, which shall not be unreasonably withheld, of the [F329 street authority].

(2) Any question whether or not consent to the erection of such a structure is unreasonably withheld shall be determined by a single arbitrator to be appointed by the parties or, in default of agreement, appointed by the Director.

(3) For the purposes of this paragraph the withholding of consent shall, to the extent that it is based on the ground that the structure ought to be erected elsewhere than in a street, be treated as unreasonable if [F330 the transporter] either that there is no reasonably practicable alternative to erecting it in a street, or that all such alternatives would, on the balance of probabilities, involve greater danger to life or property.

Textual Amendments

F328 Words in Sch. 4 para. 2 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 57(a); S.I. 1996/218, art. 2

F329 Words in Sch. 4 para. 2(1) substituted (1.1.1993) by New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1), Sch. 8 para. 119(3) (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch. 2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

F330 Words in Sch. 4 para. 2 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 57(b); S.I. 1996/218, art. 2

3 (1) Subject to sub-paragraph (2) below, nothing in paragraph 1 above shall empower a [F331 public gas transporter] to lay down or place any pipe or other works into, through or against any building, or in any land not dedicated to the public use.

(2) A [F331 public gas transporter] may exercise the powers conferred by paragraph 1 above in relation to any street which has been laid out but not dedicated to the public use [F332 only for the purpose of][F333 conveying] gas to any premises which abut on the street.

Textual Amendments

F331 Words in Sch. 4 para. 3 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 57(1)(a); S.I. 1996/218, art. 2

F332 Words in Sch. 4 para. 3(2) substituted (1.1.1993) by New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1), Sch. 8 para. 119(4) (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch. 2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

F333 Word in Sch. 4 para. 3(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 57(4); S.I. 1996/218, art. 2

4 (1) Except in cases of emergency arising from defects in any pipes or other works, a [F334 street] which— E+W+S

(a) does not constitute for the purposes of the M77 Highways Act 1980 a highway or part of a highway maintainable at the public expense; and

(b) is under the control or management of, or maintainable by, any railway authority or navigation authority,

shall not be opened or broken up under paragraph 1 above except with the consent, which shall not be unreasonably withheld, of that authority.

(2) Any question whether or not consent to the opening or breaking up of such a [F334 street] is unreasonably withheld shall be determined by a single arbitrator to be appointed by the parties or, in default of agreement, appointed by the Director.

Textual Amendments

F334 Words in Sch. 4 para. 4(1)(2) substituted (1.1.1993) by New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1), Sch. 8 para. 119(2) (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch. 2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

Marginal Citations

M77 1980 c. 66.

5 F335 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

(2) Nothing in paragraph 1 above shall effect the application to any operation of sections 34 to 36 of the M78 Coast Protection Act 1949.

Textual Amendments

F335 Sch. 4 para. 5(1) repealed (1.1.1993) by New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1)(2), Sch. 8 para. 119(5), Sch.9 (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch. 2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

Marginal Citations

M78 1949 c. 74.

6 E+W+S In this Schedule—

• F336 . . .

• “navigation authority” means any person or body of persons, whether incorporated or not, authorised by or under any enactment to work, maintain, conserve, improve or control any canal or other inland navigation, navigable river, estuary, harbour or dock;

• “railway authority” means any person or body of persons, whether incorporated or not, authorised by any enactment to construct, work or carry on a railway; and

• “

• [F337 “street” and “street authority” have the same meaning as in Part III of the New Roads and Street Works Act 1991.]

Textual Amendments

F336 Sch. 4 para. 6, definition of "highway authority" omitted (1.1.1993) by virtue of New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1), Sch. 8 para. 119(6) (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch.2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

F337 Sch. 4 para. 6, definition of "street" and "street authority" substituted (1.1.1993) for definition of "street" by New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1), Sch. 8 para. 119(6) (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch.2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

7 E+W+S In its application to Scotland this Schedule shall have effect with the following modifications—

(a) in paragraphs 1 to 4, for the word “street”, wherever it occurs, there shall be substituted the word “road”;

[F338 (b) in paragraph 2(1) for the words “street authority” there shall be substituted the words “road works authority”;]

(c) in paragraphs 2(2) and 4(2), for the word “arbitrator” there shall be substituted the words “arbiter”;

(d) in paragraph 4(1), for the words “for the purposes of the Highways Act 1980 a highway part of a highway maintainable at the public expense” there shall be substituted the words “a road within the meaning of the M79 Roads (Scotland) Act 1984”;

F339 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F340 (f) in paragraph 6, for “street” and “street authority” substitute “road” and “road works authority” and for “Part III” substitute “Part IV”.]

Textual Amendments

F338 Sch. 4 para. 7(b) substituted (1.1.1993) by New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1), Sch. 8 para. 119(7)(a) (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch. 2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

F339 Sch. 4 para. 7(e) repealed (1.1.1993) by New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1), Sch. 8 para. 119(7)(b), Sch. 9 (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch. 2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

F340 Sch. 4 para. 7(f) substituted (1.1.1993) by New Roads and Street Works Act 1991 (c. 22, SIF 59, 108), s. 168(1), Sch. 8 para. 119(7)(c) (with s. 25(2)); (E.W.) S.I. 1992/2984, art. 2(2), Sch. 2 and (S.) S.I. 1992/2990, art. 2(2), Sch. 2.

Marginal Citations

M79 1984 c. 54.

F341 SCHEDULE 5 E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F341 Sch. 5 repealed (1.3.1996) by 1995 c. 45, ss. 9(3), 17(5), Sch. 6; S.I. 1996/218, art. 2; Sch. 5 expressed to be amended (30.12.2002) by 2002 asp 17, ss. 61, 64(2), Sch. 3 Pt. 1 para. 16(3) (with s. 63)

F344 SCHEDULE 6 E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F344 Sch. 6 repealed 31.7.1998 but without effect in relation to gas levy for the year 1997-98 or any other previous year) by 1998 c. 36, s. 165, Sch. 27 Pt. V(3) Note 1

Section 67(1).

SCHEDULE 7 U.K. Minor And Consequential Amendments

Interpretation E+W+S

1 E+W+S In this Schedule “public gas supplier” has the same meaning as in Part I of this Act.

Enactments relating to statutory undertakers etc. E+W+S

F345 2 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F345 Sch. 7 para. 2 repealed (1.3.1996) by 1995 c. 45, s. 17(5), Sch. 6; S.I. 1996/218, art. 2

E+W+S

3 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F346

Textual Amendments

F346 Sch. 7 para. 3 repealed by Water Act 1989 (c. 15, SIF 130), s. 190(3), Sch. 27 Pt. I (with ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 41(1), 57(6), 58)

The Rights of Entry (Gas and Electricity Boards) Act 1954 E+W+S

F347 4 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F347 Sch. 7 para. 4 repealed (1.3.1996) by 1995 c. 45, s. 17(5), Sch. 6; S.I. 1996/218, art. 2

The Pipe-lines Act 1962 E+W+S

F348 5 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F348 Sch. 7 para. 5 repealed (1.3.1996) by 1995 c. 45, s. 17(5), Sch. 6; S.I. 1996/218, art. 2

6 (1) The M81 Gas Act 1965— E+W+S

(a) shall have effect without the amendments made by paragraph 14 of Schedule 6 to the 1972 Act and the associated repeals made by Schedule 8 to that Act; and

(b) as so having effect, shall be amended as follows.

F349 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In Part II, for the words “section 11 of the principal Act”, wherever they occur, there shall be substituted the words “ Schedule 3 to the principal Act ”.

(4) In section 4(2), the words from “shall relate only” to “statutory corporation and” shall be omitted.

(5) In section 5(5), for the words “inform the Minister that they object” there shall be substituted the words “ informs the Minister that he objects ”.

(6) In section 6(1), for the word “apply” there shall be substituted the word “ applies ”, for the word “satisfy” there shall be substituted the word “ satisfies ” and for the words “they think” there shall be substituted the words “ he thinks ”.

(7) In section 6(2), for the words “have taken” there shall be substituted the words “ has taken ” and for the word “them” there shall be substituted the word “ him ”.

(8) In section 6(3), for the word “them” there shall be substituted the word “ him ”.

(9) In section 6(4), for the word “their” there shall be substituted the word “ his ” and for the word “cause” there shall be substituted the word “ causes ”.

(10) In section 6(8), for the word “apply” there shall be substituted the word “ applies ” and for the word “they” there shall be substituted the word “ he ”.

(11) In section 13(3), for the word “propose” there shall be substituted the word “ proposes ” and for the words “the said section 11” there shall be substituted the words “ the said Schedule 3 ”.

(12) In section 15(2), for the word “their” there shall be substituted the word “ his ”.

(13) In section 16(1), for the words “develop or operate” there shall be substituted the words “ develops or operates ”.

(14) In sections 16(5) and 18(9), for the word “fail” there shall be substituted the word “ fails ”.

(15) In section 17(5), for the word “them” there shall be substituted the word “ him ”.

(16) In section 19(3)—

(a) at the beginning there shall be inserted the words “ Every public gas supplier to whom a storage authorisation order applies during any period shall pay to the Minister such proportion as the Minister may determine of ”; and

(b) for the words “shall be repaid to him by the Gas Council and” there shall be substituted the words “ and any sums received by the Minister under this subsection shall be ”.

(17) In section 19(4), for the words “the Gas Council in respect of sums payable by them” there shall be substituted the words “ a public gas supplier in respect of sums payable by him ”.

(18) In section 21(1), for the words “Section 68(1)” there shall be substituted the words “ Section 43(1) ”.

(19) In section 21(2), for the words “Section 69(1)” there shall be substituted the words “ Section 43(2) ” and for the words “section 68(1)” there shall be substituted the words “ section 43(1) ”.

(20) In section 21(3), the words “any gas authority or” and the words “authority or”, in the second place where they occur, shall be omitted.

(21) In section 22(1), for the words “Section 70” there shall be substituted the words “ Section 46 ”.

(22) In section 22(2), for the words “Section 73 of the principal Act” there shall be substituted the words “ Section 46 of the Gas Act 1972 ” and for the words “the principal Act”, in the second place where they occur, there shall be substituted the words “ that Act ”.

(23) In section 27(1), for the words “the Corporation” there shall be substituted the words “ the public gas supplier concerned ”.

(24) In section 28(1)—

(a) the definition of “gas authority” shall be omitted; and

(b) for the definition of “large-scale map” there shall be substituted the following definition—

““large-scale map” means a map drawn on a scale not less than 1 in 10,560;”

(25) In section 32(2), for the words “the Gas Act 1948, ” Area Board ’ has the same meaning as in” there shall be substituted the words “ the Gas Act 1986, ” public gas supplier ’ has the same meaning as in Part I of ”.

(26) In Schedule 2—

(a) for the words “the applicants”, wherever they occur, there shall be substituted the words “ the applicant ”;

(b) for the words “their proposals”, wherever they occur, there shall be substituted the words “ his proposals ”;

(c) for the words “their application”, wherever they occur, there shall be substituted the words “ his application ”;

(d) for the words “section 73 of the principal Act”, wherever they occur, there shall be substituted the words “ section 46 of the Gas Act 1972 ”;

(e) in paragraph 5(2), for the words “the applicants” there shall be substituted the words “ the applicant’s ”;

(f) in paragraph 9(1), for the words “they have been, or expect” there shall be substituted the words “ he has been, or expects ” and for the words “they must” there shall be substituted the words “ he must ”;

(g) in paragraph 9(2), for the word “have”, in both places where it occurs, there shall be substituted the word “ has ”; and

F349 (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(27) In Schedule 6—

(a) for the words “the applicants”, wherever they occur, there shall be substituted the words “ the applicant ”;

(b) in paragraph 1(2), for the words “their application” there shall be substituted the words “ his application ”;

(c) in paragraph 1(4), for the words “their proposals” there shall be substituted the words “ his proposals ”;

(d) in paragraph 5, for the words “gas board” there shall be substituted the words “ public gas supplier ”;

(e) in paragraph 7(1), for the words “their powers” there shall be substituted the words “ his powers ”; and

(f) in paragraph 7(2), for the words “their duty” there shall be substituted the words “ his duty ”.

Textual Amendments

F349 Sch. 7 para. 6(2)(26)(h) repealed (1.3.1996) by 1995 c. 45, s. 17(5), Sch. 6; S.I. 1996/218, art. 2

Marginal Citations

M81 1965 c. 36.

The Local Government (Scotland) Act 1966 E+W+S

F350 7 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F350 Sch. 7 para. 7 repealed (19.5.1997) by 1997 c. 29, s. 33(2), Sch. 4; S.I. 1997/1097, art. 3(d), Sch.

E+W+S

8 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F351

Textual Amendments

F351 Sch. 7 para. 8 repealed for financial years beginning in or after 1990 by Local Government Finance Act 1988 (c. 41, SIF 81:1), ss. 142, 149, Sch. 13 Pt. I (but subject to any saving under s. 117(8) of that 1988 Act)

The Transport Act 1968 E+W+S

9 E+W+S In section 109(2) of the M82 Transport Act 1968 (power of certain bodies to maintain or take over waterways and connected works), for paragraph (d) there shall be substituted the following paragraph—

“(d) a public gas supplier within the meaning of Part I of the Gas Act 1986;”.

Marginal Citations

M82 1968 c. 73.

The Post Office Act 1969 E+W+S

F352 10 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F352 Sch. 7 para. 10 repealed (26.3.2001) by 2000 c. 26, s. 127(6), Sch. 9; S.I. 2001/1148, art. 2(2), Sch. Table (subject to transitional provisions in arts. 3-42)

The Chronically Sick and Disabled Persons Act 1970 E+W+S

11 E+W+S In section 14(1) of the M83 Chronically Sick and Disabled Persons Act 1970 (miscellaneous advisory committees), for the words “the National Gas Consumers’ Council and the Regional Gas Consumers’ Councils” there shall be substituted the words “ the Gas Consumers’ Council ”.

Marginal Citations

M83 1970 c. 44.

E+W+S

12 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F353

Textual Amendments

F353 Sch. 7 para. 12 repealed by Planning (Consequential Provisions) Act 1990 (c. 11, SIF 123:1, 2), s. 3, Sch. 1 Pt. I

The Town and Country Planning (Scotland) Act 1972 E+W+S

F354 13 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F354 Sch. 7 para. 13 repealed (27.5.1997) by 1997 c. 11, ss. 3, 6(2), Sch. 1 Pt. I (with s. 5, Sch. 3)

The Land Compensation Act 1973 E+W+S

14 (1) In section 44(2) of the M84 Land Compensation Act 1973 (compensation for injurious affection), for the words “paragraph 13 of Schedule 2 to the Gas Act 1972” there shall be substituted the words “ paragraph 7 of Schedule 3 to the Gas Act 1986 ”. E+W+S

(2) In section 58(2) of that Act (determination of material detriment where part of house etc. proposed for compulsory acquisition), for the words “paragraph 14 of Schedule 2 to the Gas Act 1972” there shall be substituted the words “ paragraph 8 of Schedule 3 to the Gas Act 1986 ”.

Marginal Citations

M84 1973 c. 26.

The Fair Trading Act 1973 U.K.

15 (1) The Director General of Fair Trading shall consult with the Director before publishing under section 124 of the Fair Trading Act 1973 (publication of information or advice) any information or advice which the Director has power to publish under section 35(1) of this Act.

(2) Section 125(1) of that Act (annual and other reports) shall not apply to activities of the [F355 Competition Commission]on which the Director is required to report by section 39(1) of this Act.

(3) In section 133(2) of that Act (exceptions to general restriction on disclosure of information), after the words “the Director General of Telecommunications,” there shall be inserted the words “the Director General of Gas Supply,” and after the words “the M85 Telecommunications Act 1984,” there shall be inserted the words “or the Gas Act 1986,”.

F356 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F355 Words in Sch. 7 para. 15(2) substituted (1.4.1999) by S.I. 1999/506, art. 20(e)

F356 Sch. 7 para. 15(4) repealed (1.3.1996) by 1995 c. 45, s. 17(5), Sch. 6; S.I. 1996/218, art. 2

Marginal Citations

M85 1984 c. 12.

The Land Compensation (Scotland) Act 1973 E+W+S

16 (1) In section 41(2) of the M86 Land Compensation (Scotland) Act 1973 (compensation for injurious affection), for the words “paragraph 26 of Schedule 2 to the Gas Act 1972” there shall be substituted the words “ paragraph 24 of Schedule 3 to the Gas Act 1986 ”. E+W+S

(2) In section 54(2) of that Act (determination of material detriment where part of house etc. proposed for compulsory acquisition), for the words “paragraph 24 of Schedule 2 to the Gas Act 1972” there shall be substituted the words “ paragraph 22 of Schedule 3 to the Gas Act 1986 ”.

Marginal Citations

M86 1973 c. 56.

The Local Government Act 1974 E+W+S

F357 17 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F357 Sch. 7 para. 17 repealed (1.3.1996) by 1995 c. 45, s. 17(5), Sch. 6; S.I. 1996/218, art. 2

The Health and Safety at Work etc. Act 1974 E+W+S

18 E+W+S At the end of section 34 of the M87 Health and Safety at Work etc. Act 1974 (extension of time for bringing summary proceedings) there shall be inserted the following subsection—

“(6) In the application of subsection (4) above to Scotland, after the words ” applies to ’ there shall be inserted the words ” any offence under section 33(1)(c) above where the health and safety regulations concerned were made for the general purpose mentioned in section 18(1) of the Gas Act 1986 and”.

Marginal Citations

M87 1974 c. 37.

The Consumer Credit Act 1974 E+W+S

19 E+W+S In section 174(3)(a) of the M88 Consumer Credit Act 1974 (exceptions to general restriction on disclosure of information), after the words “the M89 Telecommunications Act 1984” there shall be inserted the words “or the Gas Act 1986” and after the words “the Director General of Telecommunications,” there shall be inserted the words “the Director General of Gas Supply,”.

Marginal Citations

M88 1974 c. 39.

M89 1984 c. 12.

The Oil Taxation Act 1975 E+W+S

F358 20 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F358 Sch. 7 para. 20 repealed (1.3.1996) by 1995 c. 45, s. 17(5), Sch. 6; S.I. 1996/218, art. 2

[F359 The Local Government (Scotland) Act 1975 E+W+S

Textual Amendments

F359 Sch. 7 para. 21 repealed (S.) by Local Government Finance Act 1988 (c. 41, SIF 81:1), ss. 142, 149, Sch. 13

21 E+W+S In Schedule 1 to the M90 Local Government (Scotland) Act 1975—

(a) in paragraphs 3 to 3B, for references to the Corporation there shall be substituted references to a public gas supplier;

(b) in paragraph 3, there shall be added at the end the following sub-paragraph—

“(3) In this paragraph and in paragraphs 3A and 3B below—

• “gas” means any substance which is or (if it were in a gaseous state) would be gas within the meaning of Part I of the Gas Act 1986;

• “public gas supplier” has the same meaning as in Part I of the Gas Act 1986;

• “private gas supplier” means a person who is authorised by section 6 of the said Act of 1986, or by an authorisation under section 8 of that Act, to supply gas through pipes to consumers’ premises.”; and

(c) in paragraphs 3A and 3B, for references to a private supplier there shall be substituted references to a private gas supplier.]

Marginal Citations

M90 1975 c. 30.

The Coal Industry Act 1975 E+W+S

F360 22 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F360 Sch. 7 para. 22 repealed (31.10.1994) by 1994 c. 21, s. 67, Sch. 11 Pt. II (with s. 40(7)); S.I. 1994/2553, art. 2

The Restrictive Trade Practices Act 1976 U.K.

23 U.K. In section 41(1)(a) of the M91 Restrictive Trade Practices Act 1976 (disclosure of information), after the words “the Director General of Telecommunications,” there shall be inserted the words “ the Director General of Gas Supply, ” and after the words “or the M92 Telecommunications Act 1984” there shall be inserted the words “ or the Gas Act 1986 ”.

Marginal Citations

M91 1976 c. 34.

M92 1984 c. 12.

The Local Government (Miscellaneous Provisions) Act 1976 E+W+S

24 E+W+S In section 33 of the M93 Local Government (Miscellaneous Provisions) Act 1976 (restoration or continuation of supply of water, gas or electricity), for the word “undertakers”, wherever it occurs, there shall be substituted the word “ person ”.

Marginal Citations

M93 1976 c. 57.

The Land Drainage Act 1976 E+W+S

[F361 25 E+W+S In section 112(2)(a) of the M94 Land Drainage Act 1976 (protection of nationalised undertakings etc.), for the words “the British Gas Corporation” there shall be substituted the words “ any public gas supplier within the meaning of Part I of the Gas Act 1986 ”.]

Textual Amendments

F361 Sch. 7 para. 25 repealed (E.W.) by Water Consolidation (Consequential Provisions) Act 1991 (c. 60, SIF 130), ss. 3(1), 4(2), Sch.3 (with s. 2(2), Sch. 2 paras. 10, 14(1), 15)

Marginal Citations

M94 1976 c. 70.

The Energy Act 1976 E+W+S

26 F362 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W+S

(2) In section 12(2) of that Act (disposal of gas by flaring), for the words “the British Gas Corporation” there shall be substituted the words “ a public gas supplier within the meaning of Part I of the Gas Act 1986 ”.

Textual Amendments

F362 Sch. 7 para. 26(1) repealed (1.3.1996) by 1995 c. 45, s. 17(5), Sch. 6; S.I. 1996/218, art. 2

The Estate Agents Act 1979 E+W+S

27 E+W+S In section 10(3)(a) of the M95 Estate Agents Act 1979 (exceptions to restrictions on disclosure of information), after the words “the Telecommunications Act 1984” there shall be inserted the words “or the Gas Act 1986” and after the words “the Director General of Telecommunications,” there shall be inserted the words “the Director General of Gas Supply,”.

Marginal Citations

M95 1979 c. 38.

The Competition Act 1980 U.K.

28 (1) In subsection (2)(a) of section 19 of the M96 Competition Act 1980 (exceptions to restriction on disclosure of information), after the words “the Director General of Telecommunications,” there shall be inserted the words “the Director General of Gas Supply,”. U.K.

(2) In subsection (3) of that section, at the end there shall be inserted the following paragraph—

“(h) the Gas Act 1986.”

Marginal Citations

M96 1980 c. 21.

The Acquisition of Land Act 1981 E+W+S

29 E+W+S In section 28 of the M97 Acquisition of Land Act 1981 (acquisition of rights over land by the creation of new rights), paragraph (a) shall be omitted and after paragraph (f) there shall be inserted the following paragraph—

“(g) paragraph 1 of Schedule 3 to the Gas Act 1986.”

Marginal Citations

M97 1981 c. 67.

The Building Act 1984 E+W+S

30 E+W+S In section 80(3) of the M98 Building Act 1984 (notice to local authority of intended demolition), for paragraph (b) there shall be substituted the following paragraph—

“(b) any public gas supplier (as defined in Part I of the Gas Act 1986) in whose authorised area (as so defined) the building is situated,”.

Marginal Citations

M98 1984 c. 55.

U.K.

31 E+W+S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F363

Textual Amendments

F363 Sch. 7 para. 31 repealed by Insolvency Act 1986 (c. 45, SIF 66), s. 438, Sch. 12; Sch. 7 para. 31 expressed to be repealed (1.3.1996) by 1995 c. 45, s. 17(5), Sch. 6; S.I. 1996/218, art. 2

The Bankruptcy (Scotland) Act 1985 E+W+S

32 E+W+S In section 70(4)(a) of the M99 Bankruptcy (Scotland) Act 1985 (supplies by utilities), for the words “the British Gas Corporation” there shall be substituted the words “ a public gas supplier within the meaning of Part I of the Gas Act 1986 ”.

Marginal Citations

M99 1985 c. 66.

Section 67(3).

SCHEDULE 8 U.K. Transitional Provisions and Savings

Part I U.K. Provisions and Savings Coming into Force on Appointed Day

1 (1) A notification received or given by the Secretary of State under subsection (1) of section 29A of the 1972 Act which is effective on the appointed day shall have effect as if received or given by the Secretary of State under subsection (1) of section 6 of this Act; and the provisions of this Act shall apply accordingly. E+W+S

(2) A direction given by the Secretary of State under subsection (2) of the said section 29A which is effective on the appointed day shall have effect as if given by the Secretary of State under subsection (2) of the said section 6; and the provisions of this Act shall apply accordingly.

2 E+W+S A consent given or having effect as if given under section 29 of the 1972 Act by the Secretary of State which is effective on the appointed day shall have effect as an authorisation granted by the Secretary of State under section 8 of this Act; and the provisions of this Act shall apply accordingly.

3 E+W+S Any regulations made under section 25 of the 1972 Act which are effective on the appointed day shall have effect as if—

(a) they were made under section 12 of this Act; and

(b) references in those regulations to the Corporation were references to a public gas supplier within the meaning of Part I of this Act;

and the provisions of this Act shall apply accordingly.

4 E+W+S Any regulations made or having effect as if made under section 29B of the 1972 Act which are effective on the appointed day shall have effect as if—

(a) they were made under section 16 of this Act; and

(b) references in those regulations to the Corporation were references to a public gas supplier within the meaning of Part I of this Act;

and the provisions of this Act shall apply accordingly.

5 E+W+S Any meter which immediately before the appointed day is, or is treated as, stamped under section 30 of the 1972 Act shall be treated as stamped under section 17 of this Act.

6 (1) This paragraph applies to any regulations made or having effect as if made under section 31 of the 1972 Act which— E+W+S

(a) are effective on the appointed day; and

(b) do not make such provision as is mentioned in subsections (2) to (4) of that section or in section 42(2) of that Act.

(2) Any regulations to which this paragraph applies shall have effect as if made under section 15 of the M100 Health and Safety at Work etc. Act 1974 for [F364 the general purpose of protecting the public from personal injury, fire, explosions and other dangers arising from the transmission or distribution of gas through pipes, or from the use of gas supplied through pipes]; and, subject to sub-paragraph (3) below, the provisions of Part I of that Act and the provisions of this Act shall apply accordingly.

[F365 (2A) In sub-paragraph (2) above “gas” has the same meaning as in Part I of this Act.]

(3) Section 1(2) of the said Act of 1974 shall have effect as if any regulations to which this paragraph applies were in force under an enactment specified in the third column of Schedule 1 to that Act.

(4) Section 20 of the said Act of 1974 shall have effect as if anything done before the appointed day in contravention of any regulations to which this paragraph applies has been done on or after that day.

Textual Amendments

F364 Words in Sch. 8 para. 6(2) substituted (6.3.1992) by Offshore Safety Act 1992 (c. 15), s. 3(3)(c).

F365 Sch. 8 para. 6(2A) inserted (6.3.1992) by Offshore Safety Act 1992 (c. 15), s. 3(3)(d).

Marginal Citations

M100 1974 c. 37.

7 (1) A direction given by the Secretary of State under section 17 of the M101 Oil and Gas (Enterprise) Act 1982 which is effective on the appointed day shall have effect as if given by the Director under section 19 of this Act; and the provisions of this Act shall apply accordingly. E+W+S

(2) Any reference in a deed or other instrument to the functions of the Corporation shall be taken to include a reference to any obligations arising under an agreement entered into by the Corporation in pursuance of directions given or having effect as if given under section 19 of this Act.

Marginal Citations

M101 1982 c. 23.

8 (1) A notice given to the Secretary of State under subsection (1) of section 15 of the Oil and Gas (Enterprise) Act 1982 which is effective on the appointed day shall have effect as if given to the Director under subsection (1) of section 20 of this Act and as if any map accompanying that notice and complying with the requirements of subsection (2) of the said section 15 complied with the requirements of subsection (2) of the said section 20; and the provisions of this Act shall apply accordingly. E+W+S

(2) A notice published by the Secretary of State under section 15(3) of the said Act of 1982 which is effective on the appointed day shall have effect as if published by the Director under section 20(3) of this Act; and the provisions of this Act shall apply accordingly.

(3) A direction given by the Secretary of State under section 15(4) of the said Act of 1982 which is effective on the appointed day shall have effect as if given by the Director under section 20(4) of this Act; and the provisions of this Act shall apply accordingly.

9 E+W+S A direction given by the Secretary of State under section 16(1) of the M102 Oil and Gas (Enterprise) Act 1982 which is effective on the appointed day shall have effect as if given by the Director under section 21(1) of this Act; and the provisions of this Act shall apply accordingly.

Marginal Citations

M102 1982 c. 23.

10 E+W+S Any maximum prices fixed by the Corporation under paragraph 12 of Schedule 4 to the 1972 Act which are effective on the appointed day shall have effect as if fixed by the Director under section 37 of this Act.

11 E+W+S Any office fixed or address published before the appointed day for the purposes of section 44 of the 1972 Act shall be deemed on and after that day to have been fixed or published for the purposes of section 46(3) of this Act.

12 (1) Where immediately before the appointed day there is in force an agreement which— E+W+S

(a) confers or imposes on the Corporation any rights or liabilities; and

(b) refers (in whatever terms and whether expressly or by implication) to any provision of the 1972 Act, to the Corporation’s statutory gas undertaking or to statutory purposes,

the agreement shall have effect, in relation to anything falling to be done on or after that day, as if for that reference there were substituted a reference to the corresponding provision of this Act, to the Corporation’s undertaking as a public gas supplier or, as the case may require, to purposes connected with the supply of gas through pipes to premises in the Corporation’s authorised area.

(2) In this paragraph “authorised area” and “public gas supplier” have the same meanings as in Part I of this Act.

(3) References in this paragraph to an agreement include references to a deed, bond or other instrument.

13 E+W+S Where—

(a) any sum was deposited with the Corporation by way of security under any provision of the 1972 Act; and

(b) on and after the appointed day that sum is treated by the Corporation as deposited under any provision of this Act,

any period beginning three months or less before that day, being a period during which the sum was deposited with the Corporation, shall be treated for the purposes of the payment of interest on that sum as a period during which the sum was deposited under that provision of this Act.

14 E+W+S The repeal by this Act of section 43 of the 1972 Act shall not affect the operation of that section in relation to offences committed before the appointed day.

15 E+W+S The repeal by this Act of section 46 of the 1972 Act shall not affect the operation of that section as applied by section 22 of the M103 Gas Act 1965.

Marginal Citations

M103 1965 c. 36.

16 E+W+S The repeal by this Act of Schedule 4 to the 1972 Act shall not affect the operation on or after the appointed day of so much of that Schedule as relates to the determination by arbitration of any matter which immediately before that day falls to be determined by arbitration under that Schedule.

17 E+W+S The repeal by this Act of any provision by virtue of which any enactment applies in relation to a person carrying on a gas undertaking shall not affect the continuing validity of anything done under that enactment before the appointed day; and that enactment shall continue for the purposes of anything so done to have effect on and after that day as if the enactment continued to apply in relation to the Corporation and, after the transfer date, to the successor company as it applied in relation to the Corporation before the appointed day.

Part II U.K. Provisions and Savings Coming into Force on Transfer Date

18 E+W+S An authorisation granted under section 7 of this Act to the Corporation which is effective on the transfer date shall have effect as if granted to the successor company.

19 E+W+S A declaration made by the Corporation in accordance with regulations made, or having effect as if made, under section 12(3) of this Act which is effective on the transfer date shall have effect as if made by the successor company.

20 E+W+S A tariff fixed, or having effect as fixed, under section 14(1) of this Act by the Corporation which is effective on the transfer date shall have effect as if fixed by the successor company.

21 E+W+S A direction given, or having effect as if given, under section 19 of this Act to the Corporation which is effective on the transfer date shall have effect as if given to the successor company.

22 (1) A notice given, or having effect as if given, under section 20(1) of this Act by the Corporation which is effective on the transfer date shall have effect as if given by the successor company. E+W+S

(2) A direction given, or having effect as if given, under section 20(4) of this Act to the Corporation which is effective on the transfer date shall have effect as if given to the successor company.

23 E+W+S A direction given, or having effect as if given, under section 21(1) this Act to the Corporation which is effective on the transfer date shall have effect as if given to the successor company.

24 E+W+S Any office fixed or address published by the Corporation for the purposes of section 46(3) of this Act, and any office or address having effect as if so fixed or published, shall be deemed on and after the transfer date to have been so fixed or published by the successor company.

25 E+W+S A direction given under section 63 of this Act to the Corporation which is effective on the transfer date shall have effect as if given to the successor company.

26 E+W+S A compulsory purchase order made by the Corporation which was made, or has effect as if made, by virtue of Schedule 3 to this Act and is effective on the transfer date shall have effect as if made by the successor company.

27 (1) Where immediately before the transfer date there is in force an agreement which— U.K.

(a) confers or imposes on the Corporation any rights or liabilities which vest in the successor company by virtue of section 49 of this Act; and

(b) refers (in whatever terms and whether expressly or by implication) to a member or officer of the Corporation,

the agreement shall have effect, in relation to anything falling to be done on or after that date, as if for that reference there were substituted a reference to such person as that company may appoint or, in default of appointment, to the officer of that company who corresponds as nearly as may be to the member or officer of the Corporation in question.

(2) References in this paragraph to an agreement include references to a deed, bond or other instrument.

28 (1) Any agreement made, transaction effected or other thing done by, to or in relation to the Corporation which is in force or effective immediately before the transfer date shall have effect as if made, effected or done by, to or in relation to the successor company, in all respects, as if the successor company were the same person, in law, as the Corporation, and accordingly references to the Corporation— U.K.

(a) in any agreement (whether or not in writing) and in any deed, bond or instrument;

(b) in any process or other document issued, prepared or employed for the purposes of any proceeding before any court or other tribunal or authority; and

(c) in any other document whatsoever (other than an enactment) relating to or affecting any property, right or liability of the Corporation which vests by virtue of section 49 of this Act in the successor company,

shall be taken as referring to the successor company.

(2) Nothing in sub-paragraph (1) above shall be taken as applying in relation to any agreement made, transaction effected or other thing done with respect to any right or liability of the Corporation which vests by virtue of section 50 of this Act in the Treasury.

29 U.K. It is hereby declared for the avoidance of doubt that—

(a) the effect of section 49 of this Act in relation to any contract of employment with the Corporation in force immediately before the transfer date is merely to modify the contract by substituting the successor company as the employer (and not to terminate the contract or vary it in any other way); and

(b) that section is effective to vest the rights and liabilities of the Corporation under any agreement or arrangement for the payment of pensions, allowances or gratuities in the successor company along with all other rights and liabilities of the Corporation;

and accordingly any period of employment with the Corporation or a wholly owned subsidiary of the Corporation shall count for all purposes as a period of employment with the successor company or (as the case may be) a wholly owned subsidiary of the successor company.

30 (1) Any certificate issued or other thing done in pursuance of any regulation made or having effect as if made under section 21 of the 1972 Act which is in force or effective immediately before the transfer date shall have effect as if issued or done in pursuance of the corresponding enactment, regulation or rule relating to securities issued under the M104 National Loans Act 1968. U.K.

(2) Any agreement made, transaction effected or other thing done in relation to any British Gas 3% Guaranteed Stock, 1990-95 which is in force or effective immediately before the transfer date shall have effect as if made, effected or done in relation to that Stock as renamed under subsection (3) of that section and, accordingly, references to that Stock in any agreement (whether or not in writing) or in any deed, bond, instrument or other document whatsoever shall be taken as referring to that Stock as so renamed.

(3) In this paragraph “British Gas Stock” has the same meaning as in section 50 of this Act.

Marginal Citations

M104 1968 c. 13.

31 (1) It shall be the duty of the Corporation and of the successor company to take, as and when during the transitional period the successor company considers appropriate, all such steps as may be requisite to secure that the vesting in the successor company by virtue of section 49 of this Act or this paragraph of any foreign property, right or liability is effective under the relevant foreign law. U.K.

(2) During the transitional period, until the vesting in the successor company by virtue of section 49 of this Act or this paragraph of any foreign property, right or liability is effective under the relevant foreign law, it shall be the duty of the Corporation to hold that property or right for the benefit of, or to discharge that liability on behalf of, the successor company.

(3) Nothing in sub-paragraphs (1) and (2) above shall be taken as prejudicing the effect under the law of the United Kingdom or of any part of the United Kingdom of the vesting in the successor company by virtue of section 49 of this Act or this paragraph of any foreign property, right or liability.

(4) The Corporation shall have all such powers as may be requisite for the performance of its duty under this paragraph, but—

(a) it shall be the duty of the successor company during the transitional period to act on behalf of the Corporation (so far as possible) in performing the duty imposed on the Corporation by this paragraph; and

(b) any foreign property, rights and liabilities acquired or incurred by the Corporation during that period shall immediately become property, rights and liabilities of the successor company.

(5) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have been determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(6) Any expenses incurred by the Corporation under this paragraph shall be met by the successor company.

32 (1) Notwithstanding the repeal by this Act of section 8 of the 1972 Act, it shall be the duty of the Corporation to make a report to the Secretary of State in accordance with that section in respect of each financial year of the Corporation ending before the transfer date. E+W+S

(2) Notwithstanding the repeal by this Act of section 23 of that Act, it shall be the duty of the Corporation to prepare statements of accounts in accordance with subsection (1)(b) and (2) of that section in respect of each financial year of the Corporation ending before the transfer date, and that section shall continue to apply during the transitional period in relation to those statements and in relation also to the auditing of those statements and of accounts kept in accordance with subsection (1)(a) of that section in respect of that financial year.

(3) Any expenses incurred by the Corporation under this paragraph shall be met by the successor company.

33 E+W+S Where by virtue of anything done before the transfer date, any enactment amended by Schedule 7 to this Act has effect in relation to the Corporation, that enactment shall have effect in relation to the successor company as if that company were the same person, in law, as the Corporation.

34 E+W+S Every provision contained in a local Act, or in subordinate legislation, which is in force immediately before the transfer date and then applicable to the Corporation shall have effect as if—

(a) for references therein to the Corporation there were substituted references to the successor company; and

(b) for any reference (however worded and whether expressly or by implication) to the undertaking or business, or any part of the undertaking or business, of the Corporation there were substituted a reference to the undertaking or business, or the corresponding part of the undertaking or business, of the successor company.

35 (1) Nothing in this Act shall effect the validity of anything done by, or in relation to, the Corporation before the transfer date under or by virtue of the M105 Public Utilities Street Works Act 1950; and anything which, immediately before that date, is in process of being done under, or by virtue of, that Act by or in relation to it (including, in particular, any legal proceedings to which it is a party) may be continued by, or in relation to, the successor company. E+W+S

(2) Any notice or direction given or other thing whatsoever done under the said Act of 1950 by the Corporation shall, if effective at the transfer date, continue in force and have effect as if similarly given or done by the successor company.

Marginal Citations

M105 1950 c. 39.

36 (1) For the purposes of section 33 of the M106 General Rate Act 1967 (public gas suppliers) the successor company shall be treated as if it were the same person as the Corporation. E+W+S

(2) An order under subsection (1) of that section which applies that section to the Corporation and is effective on the transfer date shall have effect as if it applied that section to the successor company.

(3) An order under subsection (5) of that section which applies in relation to hereditaments occupied by the Corporation and is effective on the tranfer date shall have effect as if it applied to the corresponding hereditaments occupied by the successor company.

Marginal Citations

M106 1967 c. 9.

37 (1) Where an asset, or the right to receive an asset, vests in the successor company by virtue of section 49 of this Act, then for the purposes of Part I of the M107 Industry Act 1972 and Part II of the M108 Industrial Development Act 1982— E+W

(a) so much of any expenditure incurred by the Corporation in providing that asset as is approved capital expenditure (of any description relevant for the purposes of regional development grant) in respect of which no payment of regional development grant has been made to the Corporation shall be treated as having been incurred by the successor company and not by the Corporation; and

(b) where the asset itself vests in the successor company by virtue of section 49 of this Act, it shall be treated as a new asset if it would have fallen to be so treated if it had remained vested in the Corporation.

(2) In this paragraph “regional development grant” means a grant under Part I of the Industry Act 1972 or Part II of the Industrial Development Act 1982 and “approved capital expenditure” has the same meaning as it has for the purposes of the provisions relating to regional development grant.

Marginal Citations

M107 1972 c. 63.

M108 1982 c. 52.

38 E+W An order under section 19 of the M109 Local Government Act 1974 (rating of certain public utilities and other bodies) which applies in relation to hereditaments occupied by the Corporation and is effective on the transfer date shall have effect as if it applied to the corresponding hereditaments occupied by the successor company.

Marginal Citations

M109 1974 c. 7.

39 E+W An order under section 6 of the M110 Local Government (Scotland) Act 1975 (valuation by formula of certain lands and heritages) which applies in relation to lands and heritages occupied by the Corporation and is effective on the transfer date shall have effect as if it applied in relation to the corresponding lands and heritages occupied by the successor company.

Marginal Citations

M110 1975 c. 30.

40 E+W The repeal by this Act of section 10 of and Schedule 1 to the M111 Oil and Gas (Enterprise) Act 1982 shall not affect the operation of any scheme made under that section before the transfer date.

Marginal Citations

M111 1982 c. 23.

41 (1) Where a distribution is proposed to be declared during the accounting reference period of the successor company which includes the transfer date or before any accounts are laid or filed in respect of that period, sections 270 to 276 of the M112 Companies Act 1985 (accounts relevant for determining whether a distribution may be made by a company) shall have effect as if— E+W+S

(a) references in section 270 to the company’s accounts or to accounts relevant under that section; and

(b) references in section 273 to initial accounts,

included references to such accounts as, on the assumptions stated in sub-paragraph (2) below, would have been prepared under section 227 of that Act in respect of the relevant year.

(2) The said assumptions are—

(a) that the relevant year had been a financial year of the successor company;

(b) that the vesting effected by section 49 of this Act had been a vesting of all the property, rights and liabilities (other than any rights or liabilities which vest in the Treasury by virtue of section 50 of this Act) to which the Corporation was entitled or subject immediately before the beginning of the relevant year and had been effected immediately after the beginning of that year;

(c) after the value of any asset and the amount of any liability of the Corporation vested in the successor company by virtue of that section had been the value or (as the case may be) the amount assigned to that asset or liability for the purposes of that statement of accounts prepared by the Corporation in respect of the financial year immediately preceding the relevant year;

(d) that any securities of the successor company issued or allotted before the declaration of the distribution had been issued or allotted before the end of the relevant year; and

(e) such other assumptions (if any) as may appear to the directors of the successor company to be necessary or expedient for the purposes of this paragraph.

(3) For the purposes of the said accounts the amount to be included in respect of any item shall be determined as if anything done by the Corporation (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by the successor company.

Accordingly (but without prejudice to the generality of the preceding provision) the amount to be included in any reserves of the successor company as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Corporation had been realised and retained by the successor company.

(4) The said accounts shall not be regarded as statutory accounts for the purposes of section 55 of this Act.

(5) In this paragraph—

• “complete financial year” means a financial year ending with 31st March;

• “the relevant year” means the last complete financial year of the Corporation ending before the transfer date;

• “securities” has the same meaning as in Part II of this Act.

Marginal Citations

M112 1985 c. 6.

Section 67(4).

SCHEDULE 9 U.K. Repeals

Part I U.K. Repeals Coming into Force on Appointed Day

Chapter	Short title	Extent of repeal
15 & 16 Geo. 5. c. 71.	The Public Health Act 1925.	In section 7(3), the word “gas”.
17 & 18 Geo. 5. c. 36.	The Landlord and Tenant Act 1927.	In section 25(1) in the definition of “statutory company”, the word “gas,”.
23 & 24 Geo. 5. c. 14.	The London Passenger Transport Act 1933.	In section 93(6), the words “gas or”.
26 Geo. 5. & 1 Edw. 8. c. 49.	The Public Health Act 1936.	In section 343 in the definition of “statutory undertakers”, the word “gas,”.
2 & 3 Geo. 6. c. 31.	The Civil Defence Act 1939.	In section 90(1) in the definition of “Public utility undertakers”, the word “gas,” where it first occurs and the words “gas or” immediately after “supplying”.
2 & 3 Geo. 6. c. xcix.	The London Gas Undertakings (Regulations) Act 1939.	The whole Act.
8 & 9 Geo. 6. c. 42.	The Water Act 1945.	In section 1(1) of Schedule 3 in the definition of “statutory undertakers”, the word “gas,”.
10 & 11 Geo. 6. c. 42.	The Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947.	In section 7(1) in the definition of “statutory undertakers”, the word “gas,”.
11 & 12 Geo. 6. c. 22.	The Water Act 1948.	In section 15(1) in the definition of “appropriate Minister” in paragraph (b), the word “, gas” and, in the definition of “statutory undertakers”, the word “gas,”.
2 & 3 Eliz. 2. c. 21.	The Rights of Entry (Gas and Electricity Boards) Act 1954.	In section 3(1), the definition of “the Corporation”.
6 & 7 Eliz. 2. c. 69.	The Opencast Coal Act 1958.	In section 51(1) in the definition of “appropriate Minister”, the word “, gas”.
10 & 11 Eliz. 2. c. 58.	The Pipe-lines Act 1962.	In section 66(1) in the definition of “statutory undertakers”, the word “gas,”.
1964 c. 40.	The Harbours Act 1964.	In paragraph 6(2)(c) of Schedule 3, the word “gas,”.
1965 c. 36.	The Gas Act 1965.	In section 4(2), the words from “shall relate” to “statutory corporation and”.
		In section 28(1), the definition of “the Corporation” and, in
		the definition of “statutory undertakers”, the word “gas,”.
1967 c. 9.	The General Rate Act 1967.	In section 19(6) in the definition of “non-industrial building”, the word “gas,”.
1967 c. 10.	The Forestry Act 1967.	In section 40(2)(d), the word “gas,”.
1968 c. 16.	The New Towns (Scotland) Act 1968.	In section 47(1) in the definition of “statutory undertakers”, the word “gas,”.
1971 c. 78.	The Town and Country Planning Act 1971.	In section 224(1)(b), the word “, gas”.
		In section 290(1) in the definition of “statutory undertakers”, the word “, gas”.
1972 c. 52.	The Town and Country Planning (Scotland) Act 1972.	In section 213(1)(b), the words “gas or”.
		In section 275(1) in the definition of “statutory undertakers”, the word “gas”
1972 c. 60.	The Gas Act 1972.	Section 1(6).
		Section 2(1).
		Section 6(5).
		Sections 9 to 13.
		Part III.
		Section 34.
		Sections 37 to 47.
		In section 48(1), the definitions of “Area Board”, “calorific value”, “declared calorific value”, “distribution main”, “gas”, “gas fittings”, “the National Council”, “Regional Council” and “therm”.
		Section 49.
		Schedules 1 to 8.
1974 c. 40.	The Control of Pollution Act 1974.	In section 73(1) in the definition of “statutory undertakers”, the word “gas,”.
1975 c. 24.	The House of Commons Disqualification Act 1975.	In Schedule 1, in Part III, the entry relating to the Chairman in receipt of remuneration of the National Gas Consumers’ Council or any Regional Gas Consumers’ Council.
1975 c. 30.	The Local Government (Scotland) Act 1975.	In Schedule 1, paragraph 3A(2).
1975 c. 55.	The Statutory Corporations (Financial Provisions) Act 1975.	Section 6(2).
		In Schedule 3, Part II.
1975 c. 70.	The Welsh Development Agency Act 1975.	In section 27(1) in the definition of “statutory undertakers”, the word “gas,”.
1976 c. 75.	The Development of Rural Wales Act 1976.	In section 34(1) in the definition of “statutory undertakers”, the word “gas,”.
		In column (1) of the table to paragraph 56(3) of Schedule 3, the word “, gas”.
1976 c. 76.	The Energy Act 1976.	In section 18(3), the words “or the British Gas Corporation”.
1979 c. 46.	The Ancient Monuments and Archaeological Areas Act 1979.	In section 61(2)(a), the word “gas,”.
1980 c. 37.	The Gas Act 1980.	The whole Act.
1980 c. 65.	The Local Government Planning and Land Act 1980.	In section 108(1)(a), the word “gas,”.
		In section 120(3) in the definition of “statutory undertakers”, the word “gas,”.
		In section 170(1)(a), the word “gas,”.
		In Schedule 16 in the definition of “statutory undertakers”, the word “gas,”.
		In paragraph 2 of Schedule 19, the word “gas,”.
1980 c. 66.	The Highways Act 1980.	In section 121(6)(a), the word “gas,”.
		In section 157(9), the word “gas,”.
		In section 329(1), the definition of “gas undertakers”.
		In section 329(1) in the definition of “statutory undertakers”, the word “gas,”.
1981 c. 64.	The New Towns Act 1981.	In section 78(1)(b), the word “, gas”.
		In section 79(1)(a)(iii), the word “gas,”.
1981 c. 67.	The Acquisition of Land Act 1981.	In section 8(1)(a)(iii), the word “gas,”.
1982 c. 16.	The Civil Aviation Act 1982.	In section 105(1) in the definition of “statutory undertakers”, the word “, gas”.
1982 c. 23.	The Oil and Gas (Enterprise) Act 1982.	Sections 12 to 17.
		In section 32(1), the words “regulations or”.
		In Schedule 3, paragraphs 5, 6 and 12 to 20.
1982 c. 30.	The Local Government (Miscellaneous Provisions) Act 1982.	In section 30(1)(b), the words “gas or”.
1984 c. 12.	The Telecommunications Act 1984.	In paragraph 23(10)(a)(ii) of Schedule 2, the words “gas or”.
1984 c. 54.	The Roads (Scotland) Act 1984.	In Schedule 9, paragraph 71.
1984 c. 55.	The Building Act 1984.	In section 126 in the definition of “statutory undertakers”, the word “gas,”.

Part II U.K. Repeals Coming into Force on Transfer Date

Chapter	Short title	Extent of repeal
1970 c. 10.	The Income and Corporation Taxes Act 1970.	In section 350, subsections (1) and (2).
1972 c. 60.	The Gas Act 1972.	Section 1(3).
		In section 2, subsections (2) and (3).
		Sections 3 to 5.
		In section 6, subsections (1) to (4) and (6) to (8).
		Sections 7 and 8.
		Part II.
		Sections 32 and 33.
		Sections 35 and 36.
		Section 48 (so far as unrepealed).
		Section 50.
1979 c. 14.	The Capital Gains Tax Act 1979.	In Schedule 2, in Part I, in paragraph 1(b), the words “and the Gas Act 1972”.
1980 c. 63.	The Overseas Development and Co-operation Act 1980.	In Schedule 1, in Part III, the entry relating to the British Gas Corporation.
1982 c. 23.	The Oil and Gas (Enterprise) Act 1982.	Sections 9 to 11.
		In section 32, in subsection (1), the words “and the power conferred by section 11(1) above to give directions”, in subsection (2), the words from “an order” to “section 11(1) above”, and subsection (3).
		Sections 33 and 34.
		In section 36, the definitions of “the 1972 Act” and “the Gas Corporation”.
		Schedule 1.
1982 c. 39.	The Finance Act 1982.	Section 147.
1982 c. 41.	The Stock Transfer Act 1982.	Section 1(3)(d).
1983 c. 29.	The Miscellaneous Financial Provisions Act 1983.	In Schedule 2, the entry relating to the Gas Act 1972.
1985 c. 62.	The Oil and Pipelines Act 1985.	Section 7(2).

Part III U.K. Repeals Coming into Force on Dissolution of British Gas Corporation

Chapter	Short title	Extent of repeal
1972 c. 60.	The Gas Act 1972.	In section 1, subsections (1), (2), (4) and (5).
1975 c. 24.	The House of Commons Disqualification Act 1975.	In Schedule 1, in Part II, the entry relating to the British Gas Corporation.
1983 c. 44.	The National Audit Act 1983.	In Schedule 4, the entry relating to the British Gas Corporation.